What is perfect price discrimination? Is perfect price discrimination efficient? Why or why not?
What will be an ideal response?
Perfect price discrimination occurs if a firm is able to sell each unit of output for the highest price anyone is willing to pay for it. With perfect price discrimination, output increases to the point at which price, and hence marginal benefit, equals marginal cost. So perfect price discrimination achieves efficiency.
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The oligopoly dilemma is whether to ________
A. act together to restrict output and raise the price B. raise the price to the monopoly profit-maximizing price C. cheat on others in the cartel to take advantage of profit opportunities D. lower the price to the perfectly competitive price
The oldest central bank, having been founded in 1694, is the
A) Bank of England. B) Deutsche Bundesbank. C) Bank of Japan. D) Federal Reserve System.