An Implication of the Taste-For-Discrimination Model Is That

question 227

Multiple Choice

An implication of the taste-for-discrimination model is that

• A)discrimination can lower a firm's production costs.
• B)discrimination will move a firm along its declining average total cost curve.
• C)other things equal, nondiscriminating firms will have lower production costs than discriminating firms.
• D)other things equal, discriminating firms will have lower production costs than nondiscriminating firms.

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Definitions:

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often in the context of bankruptcy.

Corporate Assets

Items of value owned by a corporation, including physical items as well as intangible rights and resources.

Distributed

The process or state of spreading or dispersing something more widely.

Principal

In legal terms, the main party involved, such as the primary person in a contract or the person who grants authority in a power of attorney.