An Important Lesson of Price Discrimination Is That

question 231

Multiple Choice

An important lesson of price discrimination is that:

• A) price discrimination will always lead to lower profits in one of the two markets.
• B) firms can increase profits by differentiating their product attributes.
• C) all firms can perfectly price discriminate.
• D) it only increases profits when the demand curves in two different markets are not the same.

---

Definitions:

Keynesian Economists

Economists who believe that demand-side factors are critical in determining the level of economic activity, advocating for government intervention to manage demand.

Macroeconomic Policy

Strategies and actions taken by a government or central bank to regulate and control the economy as a whole, including fiscal and monetary policies.

Full Employment

When a society’s resources are all being used with maximum efficiency.

Monetarists

Monetarists believe in controlling the supply of money as a method for regulating the economy and combating inflation.