Versioning Is a Form of _____ Price Discrimination Because _____

question 142

Multiple Choice

Versioning is a form of _____ price discrimination because _____.

• A) first-degree; the firm can identify its customers' types of demand curves before they buy, allowing the firm to select the profit-maximizing version of the product
• B) second-degree; the firm cannot identify its customers' types of demand curves before they buy, so the firm produces various versions of the product in hopes that customers will self-select the appropriate product
• C) perfect; each customer buys a unique version of the product that is priced to eliminate all consumer surplus
• D) third-degree; the firm can directly determine which customers should buy which version of the product before the sale is made

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Definitions:

Evolutionary Psychology

A theoretical approach in psychology that explains mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., the functional products of natural selection.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, driving evolution.

Organisms' Success

The extent to which an organism can survive, reproduce, and pass its genes to the next generation in its specific environment.

Adaptive Function

Traits or behaviors that have evolved to serve a specific survival or reproductive purpose in the context of natural selection.