The Table Below Shows the Relationship Between the Number of Times

question 129

Multiple Choice

The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes.Each car wash costs $15. What is the marginal benefit of the 3^rd car wash each month?

• A)$4
• B)$12
• C)$16
• D)$48

Explore the implications of price discrimination on market segmentation and product differentiation.

Grasp methods businesses use to prevent arbitrage in the context of price discrimination.

Understand strategic pricing decisions based on audience segmentation insights.

Understand the concept of price discrimination and its different forms.

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Definitions:

Natural Monopoly

A scenario in the marketplace where only one company can offer a product or service more affordably than any would-be rival, frequently because of the cost advantages associated with large-scale operations.

Marginal Cost

The change in total cost that arises when the quantity produced changes by one unit; essentially the cost of producing one more unit of a good.

Government Operation

Activities carried out by the government, including regulation, provision of public services, and maintenance of law and order.

Average Costs

The total costs divided by the total output produced, a measure of cost efficiency for production.