____ 12. Price discrimination is defined as: a. selling a product at the same pr
ID: 1169783 • Letter: #
Question
____ 12. Price discrimination is defined as:
a.
selling a product at the same price to each and every consumer.
b.
selling a product at more than one price.
c.
selling a product at its marginal cost plus a markup.
d.
selling more than one version of a product.
e.
producing goods and services for sale within the firm.
In the model of perfect competition, firms maximize profits by producing where:
a.
the difference between marginal revenue and marginal cost is maximized.
b.
marginal revenue equals price.
c.
the difference between price and marginal cost is maximized.
d.
price equals marginal cost.
e.
the difference between price and marginal revenue is maximized.
When a firm requires a customer to buy additional products in order to buy one of its products, this is known as a(n):
a.
bundling contract.
b.
price differentiation.
c.
oligopolistic device.
d.
two-part tariff.
e.
maximizing device.
a.
selling a product at the same price to each and every consumer.
b.
selling a product at more than one price.
c.
selling a product at its marginal cost plus a markup.
d.
selling more than one version of a product.
e.
producing goods and services for sale within the firm.
In the model of perfect competition, firms maximize profits by producing where:
a.
the difference between marginal revenue and marginal cost is maximized.
b.
marginal revenue equals price.
c.
the difference between price and marginal cost is maximized.
d.
price equals marginal cost.
e.
the difference between price and marginal revenue is maximized.
When a firm requires a customer to buy additional products in order to buy one of its products, this is known as a(n):
a.
bundling contract.
b.
price differentiation.
c.
oligopolistic device.
d.
two-part tariff.
e.
maximizing device.
Explanation / Answer
(1) (b)
Price discrimination is a pricing policy where the seller charges different price for the same good, from different customers (or customer segments).
(2) (d)
A perfectly competitive firm equates her price with marginal cost, as a profit maximizing competition. The reason is, firm is a price taker and so, its price is equal to demand equal to its marginal revenue.
(3) (a)
This practice is called bundling.
An example is if Gilette sells its razors and blades as clubbed together as single unit.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.