Figure 11.1.1 -Rather Than Charging a Single Price to All Customers, a Customers

question 39

Multiple Choice

Figure 11.1.1
-Rather than charging a single price to all customers, a firm charges a higher price to men and a lower price to women. By engaging in this practice, the firm:

• A) is trying to reduce its costs and therefore increase its profit.
• B) is engaging in an illegal activity that is prohibited by the Sherman Antitrust Act.
• C) is attempting to convert producer surplus into consumer surplus.
• D) is attempting to convert consumer surplus into producer surplus.
• E) Both A and C are correct.

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Definitions:

Antibiotic

Medications used to fight bacterial infections by killing or inhibiting the growth of bacteria.

Alexander Fleming

The Scottish bacteriologist best known for discovering the antibiotic substance penicillin in 1928.

Penicillin

A group of antibiotics derived from Penicillium fungi, effective against many bacterial infections.

Romeo And Juliet

A tragedy written by William Shakespeare about two young star-crossed lovers whose deaths ultimately reconcile their feuding families.