A Firm Practices Price Discrimination by Selling at a High

question 54

Multiple Choice

A firm practices price discrimination by selling at a high price in its larger market, Market A, and a lower price in its smaller market, Market B. If this firm is forced to sell at a single price in both markets and opts for the original price in Market A, the new single-pricing strategy makes consumers in:

• A) both Market A and Market B worse off.
• B) Market A no worse off but consumers in Market B worse off.
• C) Market B no worse off but consumers in Market A worse off.
• D) both markets better off, as single pricing is always better for consumers than price discrimination.

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Definitions:

Quality of Criticism

The value or merit of feedback or evaluation based on its constructiveness, accuracy, and thoughtfulness.

Receiving Criticism

The act or ability to accept feedback or negative comments constructively, often for personal or professional improvement.

Negative Message

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Offering different options or solutions to a problem or situation for consideration.