What Is the Key Characteristic of Profit Maximizing Price Discrimination

question 90

Multiple Choice

What is the key characteristic of profit maximizing price discrimination that distinguishes intertemporal price discrimination from peak-load pricing?

• A) Peak-load pricing does not require MC = MR.
• B) Marginal revenue may be different across different groups of buyers under intertemporal price discrimination.
• C) Marginal costs are independent across time periods under peak-load pricing.
• D) Marginal revenue must be constant under both pricing schemes.

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Definitions:

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight, leading to a refusal to eat enough food and, consequently, severe weight loss.

Irritability

A state of increased annoyance or touchiness, often as a symptom of stress or certain medical conditions.

Empirical Support

Evidence that is based on observation or experiment, supporting the effectiveness or validity of a concept or treatment.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to severely restricted food intake and starvation in pursuit of thinness.