If We Observe a Firm Engaging in Price Discrimination, It

question 84

Multiple Choice

If we observe a firm engaging in price discrimination, it must be true that:

• A)The firm is enjoying higher total profits than it would have earned if it charged a single price for the product.
• B)The firm can identify the preferences of every customer it serves.
• C)The firm earns higher profits per unit than it would have earned if it charged a single price for the product.
• D)All of the above are correct.

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Definitions:

Marketing Economy

An economy where decisions regarding investment, production, and distribution are based on market conditions, primarily supply and demand.