For the Companies That Are Able to Engage in Price

question 120

Multiple Choice

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.

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Definitions:

Neutral Stimulus

An initially inactive stimulus that, through association, acquires the capacity to evoke a conditioned response.

Higher Order Conditioning

A process in behavioral psychology where a conditioned stimulus is paired with a new neutral stimulus, creating a second-level conditioned response.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Operant Conditioning

A process of behavioral adjustment where the level of an action is modified through the application of rewards or punishments.