A Firm Practices Price Discrimination by Selling at a High

question 37

Multiple Choice

A firm practices price discrimination by selling at a high price in its larger market, Market A, and a lower price in its smaller market, Market B. If this firm is forced to sell at a single-price in both markets and opts for the original price in Market A, the new single-pricing strategy makes:

• A) consumers in both Market A and Market B worse off.
• B) consumers in Market A no worse off, but consumers in Market B worse off.
• C) consumers in Market B no worse off, but consumers in Market A worse off.
• D) consumers in both markets better off, as single pricing is always better for consumers than price discrimination.

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Definitions:

Search Warrant

A court order that authorizes law enforcement agents to search for or seize items specifically described in the warrant.

Government Agents

Individuals who are employed or authorized by the government to act on its behalf in various capacities and tasks.

Eighth Amendment

Part of the United States Constitution that prohibits excessive bail, fines, and cruel and unusual punishment.

Cruel And Unusual Punishment

This concept relates to punishment that is considered unacceptable due to the suffering, pain, or humiliation it inflicts, prohibited by constitutional law in many jurisdictions.