The Principle of Voluntary Exchange Is the Concept That a Voluntary

question 183

True/False

The principle of voluntary exchange is the concept that a voluntary exchange between two people makes both people better off.

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Definitions:

Block Pricing

A pricing strategy where different quantities of a product or service are sold at different prices, usually implying that larger quantities are sold at a lower per-unit price.

First-Degree Price Discrimination

Practice of charging each customer her reservation price.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product or service.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.