Price Discrimination Occurs When a Firm

question 344

Multiple Choice

Price discrimination occurs when a firm

• A) charges customers different prices for different goods.
• B) is able to sell different units of a good at different prices.
• C) charges customers the same price for different goods.
• D) can determine which of the many market equilibrium prices it will charge.
• E) has a marginal cost curve that is horizontal.

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Definitions:

Constant

An unchanging or fixed condition in an equation or experiment, serving as a benchmark or point of reference.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (like producing a specific good or service) more efficiently than another activity.

Opportunity Cost

The cost of opting for one alternative over another, represented by the foregone benefits of the option not chosen.

France

A country in Western Europe known for its rich history, cultural heritage, and significant contributions to art, science, and philosophy.