Question

1 pts Question 21 Which of the following is an example of third degree price discrimination? None of these are third degree price discrimination A baseball stadium offers discounts to senior citizens A cable provider offers a package so customers can get cable and high-speed internet with a single subscription A car salesman can charge each customer exactly what he or she is willing to pay for the cars at his dealership 1 pts Question 22 Which of the following is an example of third degree price discrimination? Six Flags sells tickets for its amusement park for $30 and water park for $25, but a ticket for both for $45 A car salesman can charge each customer exactly what he or she is willing to pay for the cars at his dealership None of these are third degree price discrimination A woman who sells rare books can negotiate with each customer so she can charge them the exact price they are willing to pay

Answer 1

Third degree price discrimination is the type of discrimination in which the producer charges different prices to different group of consumers.

Question 21) An example of third degree price discrimination is that a baseball stadium offers discounts to senior citizens. So, option 1 is the correct answer.

Question 22) From the given options, none of the given examples are an example of third degree price discrimination. So, option 3 is the correct answer.

Question 23) It is true that monopolistically conpetitive firms face barriers to entry. The barriers to entry are less but they exist.

Question 24) In the long run, a monopolistically competitive firm does NOT have a positive economic profit in the long run. This is because, if the firms earn a positive economic profit, new firms would get attracted to this opportunity and would enter the market and hence the market would become more competitive and the firms will not be able to earn positive economic profit in the lon run. So, option 1 is the correct answer.

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