Price discrimination in the economic sense ___________? A. Is illegal. B. Does not increase the firm’s...
Price discrimination in the economic sense ___________?
| A. |
Is illegal. |
|
| B. |
Does not increase the firm’s profits. |
|
| C. |
Requires little to know information on the consumer (demand) to be effective. |
|
| D. |
Increases a firm’s profits, but can be difficult to successfully implement in practice. |
Homework Answers
Correct Answer:
D
To implement price discrimination, it is important to assess the different consumer segments and their demand characteristic. Further, price discrimination is not illegal and even government implements it in its own welfare programs. Though, it is difficult to implement, because information in the market, makes market to be efficient and scope of arbitrage is eliminated.
Add Answer to:
Price discrimination in the economic sense ___________?
A.
Is illegal.
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a. What is the firm’s short-run economic profit?
b. In the long run what do you expect to happen in this industry
(entry or exit). Why.
c. How does this long run adjustment effect the market? What
happens to equilibrium price and quantity?
d. How does this long run adjustment effect the firm? How do
their profits change?
MC ATC 2 3 4 5 6 7 8 paris
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