To Maximize Profit a Price Discriminating Firm Should

question 30

Multiple Choice

To maximize profit a price discriminating firm should

• A) produce the output at which total marginal revenue equals marginal cost.
• B) allocate the optimal output so the elasticity is the same in each market.
• C) allocate the output so that marginal revenue is the same in each market.
• D) both a and c
• E) all of the above

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Definitions:

Lens

A piece of transparent material, usually glass or plastic, that refracts or focuses light rays, used in glasses and optical instruments.

Critical Periods

Specific times during early development when the organism is particularly sensitive to certain environmental stimuli, which can have a lasting effect on later development.

Sensory Adaptation

The adjustment of sensory receptors to the level of stimulation they are exposed to, leading to decreased sensitivity with constant exposure.

Depth Perception

The visual ability to perceive the world in three dimensions, enabling the estimation of the distance of an object.