Consumers Who Place a High Value on a Good Are

question 116

Multiple Choice

Consumers who place a high value on a good are better off with pricing in the following order: 1) ________; 2) ________; 3) ________.

• A)competitive market; perfect price discrimination; single-price monopoly
• B)competitive market; single-price monopoly; perfect price discrimination
• C)single-price monopoly; competitive market; perfect price discrimination
• D)Unable to determine.

---

Definitions:

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence the market price.

Equilibrium Value

The stable value at which supply equals demand for a particular good, service, or financial instrument, leading to a balanced market condition.

Marginal Product

The additional output that results from using one more unit of a particular input, while holding other inputs constant.

Average Product

The output produced per unit of input, calculated by dividing total output by the number of units of a specific input.