Price Discrimination, If Possible, Allows a Price- Setting Firm to Increase

question 11

Multiple Choice

Price discrimination, if possible, allows a price- setting firm to increase its profits by

• A) raising the price above the competitive price.
• B) shifting its cost curves downward.
• C) charging different prices according to the different marginal cost on each unit.
• D) charging different prices according to the willingness to pay of each consumer.
• E) reducing costs through a reduction in output.

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Definitions:

Incentive

A factor, often external, that motivates or encourages an individual to act in a certain way.

Goal Object

The target or endpoint of an individual's efforts or ambitions.

Partial Reinforcement

A conditioning schedule in which a reward is not provided every time the desired response is exhibited, making the response more resistant to extinction.

Continuous Reinforcement

A reinforcement schedule in which a reward follows every correct response, often used to teach new behaviors.