Price Discrimination Occurs When

question 140

Multiple Choice

Price discrimination occurs when

• A)price exceeds marginal cost
• B)a firm charges different customers different prices,and the differences are not explained by cost factors
• C)price exceeds average cost
• D)a firm charges different customers different prices,where these differences are based on cost differences
• E)price equals average variable cost

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Definitions:

Stimuli

External events or occurrences that can elicit responses from sensory organs, leading to various forms of responses in an organism.

Gestalt Psychology

A psychological approach that emphasizes the holistic and intrinsic properties of perceptual phenomena, focusing on patterns and configurations.

Principle of Closure

A gestalt psychology principle that the mind tends to perceive incomplete figures as complete by filling in missing information.

Figure-Ground Principle

A visual perception principle that describes how humans differentiate an object (the figure) from its surrounding area (the ground).