Ordinary Price Discrimination Entails

question 50

Multiple Choice

Ordinary price discrimination entails:

• A)serving only groups of customers.
• B)identifying customers by groups.
• C)doing business as usual.
• D)serving only ordinary customers.

---

Definitions:

Individual Mandate

A requirement that individuals purchase or otherwise obtain health insurance, or face penalties, aimed at expanding healthcare coverage.

Health Insurance

Insurance that reimburses the policyholder for expenses related to medical and surgical care.

Community Rating

An insurance pricing strategy which sets premiums based on the collective risk profile of a community or geographic area rather than individual risk factors, often used in healthcare insurance.

Adverse Selection

A situation in which asymmetric information leads to a selection of undesirable outcomes, such as in insurance markets.