(Last Word) Suppose That a Firm Has "Pricing Power" and Can

question 137

Multiple Choice

(Last Word) Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand.The firm might charge

• A)a lower price to the group that has the less elastic demand.
• B)a higher price to the group that has the less elastic demand.
• C)the same price to both groups but include a "free" related product for the group that has an inelastic demand.
• D)the same price to both groups but make it difficult for the group with the more elastic demand to gain access to the product.

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Definitions:

Ethology

Approach that argues that animal behaviour should be studied in the species’ natural physical and social environment. Behaviour is genetically determined and is controlled by natural selection.

Death Instinct

A psychoanalytic concept suggesting that individuals possess an unconscious wish to die or self-destruct, counterbalanced by life-sustaining instincts.

Psychodynamic Approach

A psychological perspective that emphasizes the influence of the unconscious mind on behavior, as well as the dynamics of interpersonal relationships.

Thanatos

In Freudian psychoanalysis, a drive towards death or self-destruction, often contrasted with the life instinct, Eros.