Price Discrimination Refers to

question 42

Multiple Choice

Price discrimination refers to

• A)the actions of a single-price monopolist to determine the best price for its output
• B)selling the same product to different customers at different prices as a result of different production costs
• C)government regulation of public utility prices
• D)selling the same product to different customers at different prices for reasons unrelated to production costs
• E)charging a price just above average total cost in order to drive competing firms from the market

---

Definitions:

Efficient Output

The level of production where a firm or economy can produce the maximum amount of goods and services with the least amount of inputs.

Perfect Competition

A market structure characterized by a large number of buyers and sellers, homogeneous products, and free entry and exit, leading to price determination by supply and demand.

Wheat-Growing

The agricultural practice of cultivating wheat, a staple grain used worldwide for food.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product.