Business

Q: Dine-in restaurants typically have their lowest business volume on Monday and Tuesday nights. Besides appealing to consumers on a budget, how might a restaurant benefit from charging discounted prices on these nights? a. Demand on these nights will increase to the point where the restaurant can remove the price discounts. b. Profits on these nights will surge, allowing the restaurant to close during other nights of the week. c. By creating an incentive for consumers, a restaurant is able to capture revenue that it wouldnt otherwise. d. Price discrimination is always successful, so a restaurant can turn an unprofitable situation into a profitable one. e. Customers on a budget tend to tip their servers better, increasing the supply of staff willing to work on these nights.

Q: Many food retailers offer loyalty cards that track purchases and offer free items to customers after a certain threshold of purchases. Is this an example of price discrimination? a. Yes. The store is separating its customers based on how much they spend, and the free items represent a value to the customer that differs from that which is received by other types of patrons. b. Yes. Since the store is tracking purchases, it can offer individual customers discounted prices on items that are purchased most frequently. c. No. Since every customer has the option to receive a loyalty card, there is no differentiation in benefits received by customers. d. No. Since the rewards arent a discount in price, it wouldnt qualify as price discrimination. e. No. Because the retailer might discontinue the card at any time, the customer may never receive the earned free items.

Q: A potential complication for successful price discrimination is a. multiple demand elasticities among consumers. b. the presence of a price maker in a market full of price takers. c. a product or service for which consumers value differently. d. other industry firms also practicing price discrimination. e. the potential for consumers to resell a product or service.

Q: When we say that firms must be price makers in order to practice price discrimination, it means that this activity cannot occur with a. competitive firms. b. monopolists. c. monopolistic competitors. d. relatively elastic demand. e. indistinguishable buyers.

Q: What is the primary benefit of price discrimination? a. There is no benefit; discrimination of any kind is wrong. b. Charging multiple prices generates more profit for firms and matches more buyers and sellers in the marketplace. c. It converts firms that were price makers into price takers. d. All surplus is transferred from the producer to the consumer. e. It takes a market with varying demand elasticities and makes them more inelastic.

Q: How does coupon clipping allow for price discrimination? a. Coupon mailers are sent out only to economically disadvantaged households. b. Businesses are able to reward those customers who truly want their product by offering them a better deal than the casual consumer. c. Because coupon users are less price-sensitive, they require large differences in price to be apparent before they will be convinced to make a purchase. d. One price is charged to people who put forth the effort to use the coupon, while another price is charged to consumers for whom the marginal cost of finding and using the coupon is greater than the marginal benefit of a lowered price. e. It allows for price discrimination only if the consumer engages in extreme couponing, where the risks outweigh the rewards.

Q: A local discount store offers customers three options for printing their photos: a self-printing kiosk, one-hour photos, and next-day prints. The most likely reason this type of firm bothers to offer so many different options to its bargain-hunting consumers is because a. offering alternatives to customers leads to greater consumer satisfaction. b. some photos take longer to print than others, which allows firms to lower costs. c. the variance in impatience on the part of the consumer allows the firm to maximize profit. d. the different alternatives help consumers realize which service offers the best price. e. the competing stores also offer these same options, so it allows the discount store to remain competitive.

Q: Post-Thanksgiving consumers are already separated into distinct groups: those who shop on Black Friday and those who do not shop on Black Friday: A carnival of capitalism, Black Friday is the day after Thanksgiving, when retailers across the country dangle deep discounts to lure customers out of bed. Black Friday is also the official beginning of the holiday-buying frenzy. As retailers battled to draw customers into their stores on Black Friday, online merchants were plotting a cunning ambushoffering an arsenal of mobile-only deals intended to pick off shoppers as they wait in line. In 2011, with a record-breaking Black Fridayshoppers spent $816 million online, 26 percent more than in 2010. Cyber Monday, the Monday after Thanksgiving, might have started as a made-up occasion to give underdog e-commerce sites a day of their own, but it has become an undeniably real thingsurprising even to the people who invented it. The excerpt indicates that Cyber Monday and online sales a. discourage the violent Black Friday behavior that has become more prevalent in recent years. b. encourage shopper loyalty to brand leaders who can offer lower prices than their in-store rivals. c. split shoppers into two groups: those who like to shop on Fridays and those who like to shop on Mondays. d. further separate Black Friday shoppers into two distinct groups: those who like to find deals in person and those willing to get better deals online. e. sort shoppers into groups who like to shop during work hours and those who like to shop during the holiday atmosphere provided by Black Friday. ANS: D DIF: Moderate REF: Price Discrimination on Campus

Q: Teryn booked a flight to Boston for her little sisters wedding. When she boarded the plane, she found out that Frugal Fred, in the seat beside her, paid $100 less for his ticket. Teryn paid a higher price for her flight since she is more a. price-elastic because she is the maid of honor at her sisters wedding. b. price-inelastic because she would not dream of missing her sisters wedding. c. price-sensitive because she does not like it when people get better deals than she does. d. price-insensitive because she would have been just as happy to go to Boston any other weekend. e. price-static because she always has the same demand for trips to Boston, regardless of the event.

Q: Which of the following situations is considered price discrimination? a. McDonalds is offering food products for $1 if you order from the dollar menu. b. Barnes & Noble offers books at a lower-than-market price to members, who must pay an annual fee. c. Karen uses TripAdvisor.com to research hotel recommendations online. d. Best Buy is offering a discount on older model television sets. e. QT, a chain of gas stations, typically supplies gasoline at lower prices to fleet vehicles.

Q: The local coffee shop, Latt Caf, has a frequent-buyer program that offers a 5 percent discount to customers who like its business page on Facebook. This allows the firm to price discriminate because a. everyone will now know where to go for the best coffee in town. b. increasing its customer base lowers prices for all consumers. c. customers who are sensitive to price will take the time to go to the website. d. only java-obsessed customers are eligible for the discount. e. price-conscious customers are usually unwilling to sign up for discounts.

Q: At the Kickin Chicken Family Restaurant, which of the following menu items represents the companys attempt to price discriminate? a. A large soft drink costs $2.99, whereas a small soft drink costs $1.99. b. The chicken little tenders with fries menu name sells as an entre at $8.99, while a kickin chicken tender basket with fries menu name sells as an appetizer at $6.99; both have the same amount of tenders and fries. c. Takeout orders of dark meat buckets of chicken are $5.00 per bucket, while an order of white meat chicken costs $6.00 per bucket. d. The small-size potato salad is $1.49, while the large potato salad is $1.99. e. The bawk-buck menu highlights restaurant items that are available for $1.00 or less every day.

Q: Second degree discrimination, represented by the $5 foot-long sandwich available from Subway, occurs when the price per unit a. is consistent over time. b. varies from month to month. c. varies with the quantity sold. d. varies from producer to producer. e. is determined by the consumers willingness to pay.

Q: Consider the pricing strategy outlined in the following excerpt about a smart vending machine and use it to answer the following questions:Taking full advantage of the law of supply and demand, the Coca-Cola Company has quietly begun testing a vending machine that can automatically raise prices for its drinks in hot weather. This technology is something the Coca-Cola Company has been looking at for more than a year, said Rob Baskin, a company spokesman, adding that it had not yet been placed in any consumer market. . . . The process appears to be done simply through a temperature sensor and a computer chip, not any breakthrough technology, though Coca-Cola refused to provide any details yesterday. While the concept might seem unfair to a thirsty person, it essentially extends to another industry what has become the practice for airlines and other companies that sell products and services to consumers. The falling price of computer chips and the increasing ease of connecting to the Internet has made it practical for companies to pair daily and hourly fluctuations in demand with fluctuations in priceeven if the product is a can of soda that sells for just 75 cents.In a price-discrimination setting, people with the most inelastic demanda. pay the lowest price for the same good.b. pay the same price as everybody else.c. pay the highest price for the same good.d. pay either a higher or a lower price.e. do not buy the good.

Q: Selective private colleges advertise high tuition rates, but have the flexibility to discount the tuition for each student on an individual basis. This type of near-perfect price discrimination practiced in the real world is most similar to that which occurs in aa. movie theater. b. restaurant chain. c. jewelry store.d. nightclub.e. retail store.

Q: A campus financial aid office uses what tool to separate students into distinct groups based on family income? a. National Aid for Federal Teaching Assistance (NAFTA) b. College Student Aid Federal Fund (CSAFF) c. Free Application for Federal Student Aid (FAFSA) d. Federal Aid to Student Organization (FATSO) e. Federal Stafford Loan Program Report (FSLPR)

Q: In the research paper Personalized Dynamic Pricing of Limited Inventories by Aydin and Ziya (2007), the authors note that [I]mplementing personalization [with regard to pricing] to such a full extent may be impractical. Instead, a seller may want to use a personalization strategy where there is an announced price and single discount level that can possibly be offered to a customer depending on the signal from the customer. An everyday example of this would be a discount on a. movie tickets when the customer signals that he or she is single. b. movie tickets when the customer signals that he or she is a student. c. Twilight movie tickets when the customer signals that he or she is a Twilight fan. d. Avengers movie tickets when the customer signals that he or she is a silent-film fan. e. concessions when the customer signals that he or she is on a diet. ANS: B DIF: Moderate REF: Price Discrimination at the Movies

Q: Senior citizens typically receive many discounts in movie theaters, among other places, because they a. have very elastic demands. b. are poorer than the average population. c. have very inelastic demands. d. can be distinguished easily from other types of consumers. e. are retired and dont work anymore.

Q: Concession pricing in movie theaters separates moviegoers into what distinct groups? a. those who want to eat while watching movies and those who do not b. moviegoers who value snacks over being caught engaging in the illegal activity of smuggling in snacks c. free-riders who would rather eat their friends popcorn instead of buying their own d. revenue-building nonsnackers who attend more movies on average than those who purchase concessions e. a price-inelastic group of nonsnackers and snack smugglers and a price-elastic group of concession area snackers

Q: Evening showtimes are more popular with moviegoers. Movie theaters discount afternoon ticket prices in order to sell more tickets during the daytime hours. Unlike the customers who go to the movies in the evenings, the afternoon customers tend to be a. retirees who have already paid for many movies over their lifetimes. b. stay-at-home parents who have relatively inelastic demand compared to the rest of the moviegoing population. c. movie theater employees who could sneak in and see the movie for free; the low price deters such deceptive behavior. d. retirees, people on vacation, and those who do not work during the day and who tend to have more price-elastic demands. e. people who work or attend school and must be presented with a low price to offset their high opportunity cost of calling in sick for work or school.

Q: Many electronic brands such as Apple, Hewlett-Packard, and Epson typically offer refurbished products at lower prices. In this case, these companies are a. not discriminating prices because the refurbished products are different from the new products. b. price discriminating because they offer a similar product at a lower price. c. price discriminating because they offer those discounts only online. d. not discriminating because people can buy the same products in retail stores. e. not discriminating because they are price takers, not price makers.

Q: When a nightclub advertises ladies night and allows women to enter the club without a cover charge (whereas men are still required to pay an entrance fee), the club is charging different prices in an attempt to a. attract the best clientele and build a reputation as an exclusive club. b. discriminate between those who are willing to pay for entry and those who have an inelastic demand for an active nightlife. c. appeal to different segments of its customer base by allowing certain groups to sometimes gain free entry. d. offset the surplus of single men who tend to discriminate between nightclubs based on price. e. price discriminate, which maximizes the amount of money the club can receive from its customers.

Q: An example of price discrimination is when a. movie theaters do not allow children into R-rated movies without a parent or guardian. b. you can purchase a new PC for half the price of a new Mac, even though they are both computers. c. Procter & Gamble charges $9 for a bottle of Tide laundry detergent, while the store brand costs the consumer significantly less, despite being somewhat similar products. d. out-of-state students pay more for the same education as in-state students. e. a grocery store charges $3.00 for a box of Froot Loops on Tuesday, but charges $2.80 for a box of Froot Loops on Wednesday.

Q: The following table summarizes six potential customersu2019 ages and willingness to pay for a solo skydiving experience from SkyMasters. The aircraft has room for eight people, including the pilot and skydiving instructor. The marginal cost of adding each additional passenger is $100. SkyMasters holds significant market power for its region.Use this information to answer the following questions:CustomerMaximum Willingness to PayAgeHarold$40050Leslie$35042Jay$30045Kristen$25021Ivana$20020Matt$15018If SkyMasters decides to price discriminate based on age, which customer(s) will not skydive based on the price that should be offered to that particular age group?a. Jay b. Harold and Jay c. Kristen and Haroldd. Matte. Ivana

Q: Which consumers would not purchase any ice cream sandwiches if the firm decides to price discriminate and charge a different price in each city? a. Alvin, Albert, and Roger b. Albus and Reginald c. Alvin, Albert, Albus, Roger, and Reginald d. Robert and Reginald e. Robert and Albus

Q: Refer to the following table. Imagine there are two cities (City A and City R) and you are the only provider of ice cream sandwiches for both. Use this information to answer the following questions: Maximum Willingness to Pay (MWP) for Ice Cream SandwichesCity AMWPCity RMWPAladdin$16Richard$15Alan$12Ramon$14Alvin$10Robert$13Albert $8Roger$11Albus $6Reginald $4 Note: Unit cost is $7 for each ice cream sandwichIf an individual could charge a different price to each consumer in both cities (perfect price discrimination), how much more would this person earn compared to when he or she can charge a single price to everyone (monopoly)?a. $40 b. $39 c. $35d. $18e. $10

Q: An outlet mall tends to be more attractive to shoppers who havea. inelastic supply. b. elastic demand. c. inelastic demand.d. elastic supply.e. unit-elastic demand.

Q: In the movie Legally Blonde, a sales associate at an exclusive boutique store attempts to convince the main character to pay full price for a dress that was on the clearance rack because the salesperson incorrectly believes that the buyer is uninformed about the quality of the product and has an inelastic demand (she has a function to attend that same evening). In this case, the salesperson is attempting to practice perfecta. sales tactics. b. competition. c. product management.d. price discrimination.e. producer surplus.

Q: The following figure depicts the downward-sloping market demand (D) curve for a five-day western Caribbean cruise on Carnival Cruise Lines. The price (P) is per person in U.S. dollars, and the quantity (Q) is the number of passenger tickets sold. This figure also shows the companyu2019s relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the following questions:If this cruise line is a monopoly that charges a single price of $600 per passenger, what is the amount of consumer surplus?a. $400,000 b. $600,000 c. $800,000d. $1.2 millione. $1.6 million

Q: SHORT ANSWER1. Why would a restaurant choose to make most of its profit on alcoholic drinks, yet only break even on food?

Q: Charging a different price to each consumer results in an interesting situation. A firm is able to achieve the efficiency of a(n) ________ while also producing the output that a(n) ________ would choose.a. monopolist; governmentb. monopolist; societyc. firm; consumerd. elastic consumer; inelastic consumere. competitive market; monopolist

Q: The following figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firmu2019s relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the following questions:If the firm moves from a monopolist model that charges a single price to a perfect competition model, there would be ________ in total welfare.a. a loss of $160 b. a loss of $80 c. a gain of $40d. a gain of $120e. no change

Q: One of the benefits of perfect price discrimination over a monopoly is that it can increasea. marginal welfare..b. total welfare. c. average welfare.d. cost of productione. marginal cost.

Q: Despite creating maximum market efficiency, perfect price discrimination is often disliked by consumers because it transfers the gains in trade froma. consumers to producers. b. producers to consumers. c. firms to producers.d. buyers to consumers.e. firms to buyers.

Q: When a market model moves from that of a monopoly to one in which perfect price discrimination is practiced, the deadweight loss a. increases. b. remains unchanged. c. can increase or decrease depending on the type of loss. d. decreases. e. fluctuates.

Q: Suppose the market for golf clubs has moved from a perfectly competitive market to one that is completely dominated by firms practicing perfect price discrimination. Which of the following statements is true about the change in welfare? a. The change creates a deadweight loss. b. Societys total welfare is zero after the change. c. There is a decrease in deadweight loss accompanied by a decrease in producer surplus. d. Some surplus has been lost to society, but consumers are better-off overall. e. All of the surplus previously enjoyed by consumers has been shifted to producers.

Q: The reason economists use the term perfect for firms that are able to charge each customer a price exactly equal to the price the customer is willing to pay is because it a. is a perfect example of capitalism. b. always works perfectly, just like the theoretical model. c. describes a market outcome that produces no deadweight loss. d. charges each customer his or her own perfect price. e. works perfectly to benefit the producers selling the product.

Q: For the companies that are able to engage in price discrimination, the practice a. is profitable. b. increases the welfare of consumers. c. is sometimes inefficient for the market. d. is difficult to maintain over the long run. e. decreases the welfare of producers.

Q: Perfect price discrimination transfers the gains from trade from ________, but it also creates maximum efficiency. a. firms to buyers b. consumers to producers c. corporations to sole proprietorships d. producers to consumers e. monopolies to profit-maximizing firms

Q: Refer to the following table to answer the following questions:QuantityCity ACity BCity C1$20$15$142$17$13$133$14$11$124$11$9$115$8$7$10Kaleb is the only provider of bottled water for three cities. Because he has access to a natural spring, the marginal cost to produce an additional bottle is $0. Imagine he could price discriminate perfectly in this market. How much more profit would his firm earn if he practiced perfect price discrimination instead of practicing imperfect price discrimination (charging different prices in each city)?a. $55 b. $30 c. $25d. $20e. $10

Q: Mirabella Creations is a custom jewelry company that specializes in unique, handmade, wearable artwork. Each piece of jewelry offered for sale is made after an extensive customer consultation that results in a one-of-a-kind piece of heirloom jewelry. To maximize profits, the firm owner should charge a. the same price to all customers. b. the price that the market will bear. c. a price that will cover the firms fixed costs. d. a price that is close to each customers willingness to pay. e. a price that is competitive with mass-market jewelers available in their service area.

Q: Which of the following examples is the closest to perfect price discrimination? a. nontransferable goods that are sold in an auction b. Internet-access package deals for new and old customers c. monthly versus daily bus tickets d. daily deals in an electronics store e. clubs offering waived cover charges for ladies night

Q: Consider the following scenario to answer the following questions: The Varsity, located in downtown Atlanta, is the worlds largest drive-in restaurant. Located near the Georgia Tech campus, the drive-in attracts two distinct types of customerscollege students and visitors to Atlanta. The owners are considering offering a student discount of $1 off their combo meal, which is regularly priced at $9. There are 5,000 students interested in purchasing a combo meal, with a maximum willingness to pay of $8. There are 5,000 visiting customers interested in purchasing the combo meal, with a maximum willingness to pay of $9. Assume that each customer, at most, will purchase a single meal and the marginal cost is $5.If the Varsity decides to practice price discrimination, what will be the amount of consumer surplus if it charges most customers $9 for a standard combo meal, but charges a reduced price of $8 for only those customers who show their student identification cards?a. $0 b. $500 c. $1,000d. $2,500e. $5,000

Q: Consider the following scenario to answer the following questions: EJH Cinemas, a movie theater next to your university, attracts two types of customersthose who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket.If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone, but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the amount of consumer surplus?a. $0 b. $5,000 c. $15,000d. $20,000e. $25,000

Q: Use the following information to answer the following questions: The accompanying figure depicts the demand (D) curve for general admission concert tickets to see ECON-Jamminu2019, the worldu2019s first economics rock band, which is scheduled to visit your city next month. The concert venue can accommECON-Jammin has recently discovered that its fans are made up of two distinct groups that can be easily distinguished. The band has decided to utilize its economic knowledge and offer a high-priced ticket of $40 per person and a low-priced ticket of $20 per person. Based on this information, what is the gain in net revenue from using price discrimination versus a single-price model?a. $200 b. $150 c. $100d. $50e. $0

Q: Qcue is a software-based dynamic pricing management company that has developed software to assist professional and collegiate sports teams in increasing their ticket sales by practicing near-perfect price discrimination. Use the following excerpt from a Forbes article about the company to answer the following questions:Dynamic pricing will become much more prevalent in both professional and collegiate sports over the next few years. . . . In an industry where the demand across games tends to be dissimilar for a plethora of reasonssome predictable, yet some spuriousit only makes sense that the pricing of sports tickets should allow teams the ability to price their inventory in the most efficient way possible. . . . Accurately pricing tickets is a very difficult process, says Barry Kahn, the CEO of Qcue. In the initial stages, we had both technical and emotional barriers to overcome. We were changing the way things had been done for so many years, moving from pricing tickets 9 months out and keeping them static, to allowing the price to flex right up until the first pitch. That meant educating those in charge of ticketing operations as well as the fans. . . . In 2009, Qcue had one client. In 2010, they were working with three teams. Today their roster includes 30+ teams across MLB, MLS, NHL and NBA.When teams are able to change ticket prices minute to minute based on demand, they are attempting toa. discount tickets to their most loyal fans.b. transfer surplus from consumers to producers.c. prevent the resale of tickets through ticket reselling websites like StubHub.d. confuse the fans of their rivals in order to gain a home-field advantage.e. break down the technical and emotional barriers that exist between fans and team owners.

Q: Suppose two brothers own identical skydiving companies but have decided to experiment with different pricing structures. The older brothers company, Air Adventures, sets its prices using the profit-maximizing rule, while the younger brothers company, Sky Warriors, sets its prices using a two-tiered, price-discrimination model. Assuming that both companies face the same market demand curves, marginal costs, and costs of production, and wield significant market power for their service area, which of the following is most likely to occur? a. Air Adventures will generate a similar net revenue to Sky Warriors. b. Sky Warriors will generate a higher net revenue than Air Adventures. c. Sky Warriors will generate a lower net revenue than Air Adventures. d. Air Adventures will generate a higher net revenue than Sky Warriors. e. Sky Warriors will eventually switch to the Air Adventures model.

Q: Which of the following is a real-world example of an attempt at perfect price discrimination? a. a restaurants blue plate special b. a discount on preinstalled computer software c. a car dealership selling an automobile d. a colleges varying tuition rates, depending on state of residence e. an advertisement for buy one, get one free pizza before 3:00 P.M.

Q: In New York Citys Chinatown, tourists flock to shops to buy souvenirs from local retailers. Each store sells similar items, but each salesperson tries to determine a customers reservation price before reaching a deal. In this scenario, the salesperson is attemptinga. perfect price discrimination. b. to minimize producer loss. c. to minimize consumer loss.d. to maximize buyer behavior.e. price-taking discrimination.

Q: Cart Vader is a new business venture aimed toward selling golf carts to be used as neighborhood recreational vehicles. The new Cart Vader business owner is uncertain about what price to charge for the golf carts. After consulting with multiple sources, the owner has decided to set a high sticker price, but to allow potential buyers to negotiate down to their individual reservation price. The business owner is attempting to practicea. reservation price discrimination. b. perfect price maximization. c. potential price segmentation.d. perfect price discrimination.e. consumer price preservation.

Q: Perfect price discrimination occurs when a firm is able to a. charge each buyer the highest price that he or she is willing to pay for the good. b. identify at least two different groups of buyers. c. determine the difference between a sellers reservation price and the buyers reserve price. d. prevent frequent reselling of its product. e. determine the prices that should be charged to generate the largest amount of consumer surplus.

Q: Perfect price discrimination exists when a firm sells ________ good at a unique price to ________. a. a complementary; each group of buyers b. a similar; most of its customers c. a substitute; different customers d. a discounted; a few of its customers e. the same; each customer

Q: Reflect on the following excerpt from a Washington Post article about dynamic pricing by online retail giant Amazon.com and answer the following questions:Few things stir up a consumer revolt quicker than the notion that someone else is getting a better deal. Thats a lesson Amazon.com has just learned. Amazon, the largest and most potent force in e-commerce, was recently revealed to be selling the same DVD movies for different prices to different customers. It was the first major Web test of a strategy called dynamic pricing, which gauges a shoppers desire, measures his means and then charges accordingly. The Internet was supposed to empower consumers, letting them compare deals with the click of a mouse. But it is also supplying retailers with information about their customers that they never had before, along with the technology to use all this accumulated data. While prices have always varied by geography, local competition and whim, retailers were never able to effectively target individuals until the Web. Dynamic pricing is the new reality, and its going to be used by more and more retailers, said Vernon Keenan, a San Francisco Internet consultant. In the future, what you pay will be determined by where you live and who you are. Its unfair, but that doesnt mean its not going to happen.A firm that is able to differentiate between each of its customers by selling the same good at a unique price to each customer is practicing ________ discrimination.a. reservation priceb. perfect price c. inelastic demandd. idealized pricee. exclusive price

Q: One benefit of price discrimination is that a. firms are able to provide goods to consumers at a consistent price. b. some consumers are able to buy the product at a lower price than would otherwise exist. c. all consumers are able to gain monopsony power. d. most firms minimize revenue. e. it exists only in theory, not in the real world.

Q: Price discrimination allows businesses to make additional profits and allows markets to work more a. equitably. d. realistically. b. efficiently. e. unfairly. c. independently.

Q: The main reason firms cannot price discriminate under perfect competition is because a. firms are price takers and cannot set prices for their goods. b. firms cannot identify different kinds of consumers perfectly. c. some goods are being resold in the market. d. there is a lot of heterogeneity among consumers tastes. e. all firms share the same production technology.

1 2 3 … 14,978 Next »

Subjects