Suppose Group Price Discrimination Is Possible; However,a Firm Sets the Same

question 61

Multiple Choice

Suppose group price discrimination is possible; however,a firm sets the same price in each market.As a result,

• A) price elasticity of demand is the same in each market.
• B) the price-inelastic market will buy zero units.
• C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market.
• D) the deadweight loss is less than if the firm price discriminated.

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Definitions:

Dilate

To widen or enlarge.

Cervix

The lower, narrow part of the uterus that connects to the vagina in female anatomy.

Lightening

In pregnancy, the descent of the fetus into the pelvic cavity before the onset of labor.

Diaphragm

The diaphragm is a large, dome-shaped muscle located below the lungs that plays a crucial role in the respiratory process by helping to inhale and exhale air.