The statement that “When businesses engage in price discrimination, more units of the good will be bought and sold. This increases the overall efficiency of the market,” is False. Only in perfectly competitive market is the output maximized.
When businesses engage in price discrimination, more units of the good will be bought and sold....
6. Conditions for price discrimination Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement:"Price discrimination is possible when a good is sold in a perfectly competitive market." False, because perfectly competitive firms have no market power O None of these choices O False, because perfectly competitive firms do not profit-maximize by setting marginal revenue equal to marginal cost O True,...
1. Conditions for price discrimination Aa Aa Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement: "Price discrimination is not possible when a good is sold in a competitive market." O False, because competitive firms have market power O False, because competitive firms do not profit maximize by setting marginal revenue equal to marginal cost None of these choices O...
In order to engage in price discrimination, which of the following must be true? Group of answer choices Market can be segmented Firm has monopoly power All of these Goods cannot be resold
From an initial examination, price discrimination may not seem like a social good because ________ is transferred from consumer to producer, but the overall benefit for society ________. deadweight loss; decreases deadweight loss; increases market power; multiplies surplus; decreases surplus; increases
When would direct price discrimination be more advantageous than indirect price discrimination? What is necessary for direct price discrimination as compared to indirect price discrimination? Illustrate your answer with original examples not found in the course materials, or already given by a fellow student. Please respond in 200-250 words
1. Give an example of a good or service that is commonly sold using second-degree price discrimination, and one that is commonly sold using third-degree price discrimination, besides the ones mentioned in the lecture and textbook. Be sure to provide enough information about how these goods are sold to make it clear that they are valid examples. 2. Using at least one graph, explain how it is possible that firms in a monopolistically competitive industry can have monopoly power, yet...
market study determined that for each unit a good is sold Hi-Fi electronics the unit price of it falls by $ 380 [MU]. Yes when not units of this good are sold, the unit price is $ 8,360 [MU]., determine: a) The model or function that relates the unit price X of the good in relation to the quantity sold and, knowing that it is linear. b) How many units of the good must be sold, so that the unit price is $ 2660 [UM]. c) How many units must be sold so that each one is exactly free? one of them? d) Using a graph, determine the domain and economic path of the function of unit price
8. International price discrimination Le Jouet is a French firm, and it is the only seller of toy trains in France and Russia. Suppose that when the price of toy trains increases, Russian children more readily replace them with toy airplanes than French children. Thus, the demand for toy trains in Russia is more elastic than in France. The following graphs show the demand curves for toy trains in France (Dp) and Russia (DR) and marginal revenue curves in France...
The idea that consuming more and more units of a good eventually leads to a reduction in the additional utility received from consuming more of the good is known as: the law of demand the law of supply the law of diminishing marginal utility A change in the price of a good will cause a change in demand for that good. True False Which of the following will cause a change in the quantity demanded of a good? a change...
In general successful second degree price discrimination requires the firm to know more information about consumers than successful first degree price discrimination. True/False. Give your selection and a very brief explanation.