Differentiating products to suit customers\' tastes is a form of price discrimin

Question

Differentiating products to suit customers' tastes is a form of price discrimination?

1- True or

2- False

If a perfectly competitive firm's price is less than its average total cost but greater than its average

variable cost, the firm?

Answer

Is earning a profit

Should shut down

Is incurring a loss

Is breaking even

The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league.

Answer

True

False

Is earning a profit

Should shut down

Is incurring a loss

Is breaking even

The National Football League has long-term leases with the stadiums in major cities. Control of these stadiums is an entry barrier to a potential new football league.

Answer

True

False

Explanation / Answer

Differentiating products to suit customers' tastes is a form of price discrimination. ANS -False. Differentiating products is a marketing process which shows the differences between products. It wants to make the product more attractive by contrasting its unique qualities with other competing products. if the product is successfully differentiated , it creates a competitive advantage for the seller, becausecustomers see these products as unique or superior.Where as pricing dicriminationpricing strategy that charges customers different prices for the same product or service.

ans2-c firm is incurring a loss. WHEN a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm is loosing some of its fixed costs.

ANS3. true

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