Nonlinear Price Discrimination

question 6

Multiple Choice

Nonlinear price discrimination

• A)sets the price consumers pay based on quantity purchased.
• B)is where the firm sets prices in geometrically or exponentially decreasing price points.
• C)is used in situations where consumers have no reservation prices.
• D)eliminates deadweight loss.

---

Definitions:

Dial Indicator

An accurate linear measuring tool actuated by a plunger with a rotary display. Used to measure endplay, runout, recess depth, and so on.

Digital Calipers

Precision measuring tools that use digital displays to show measurements for distances or diameters, offering quick and accurate readings.

Air-over-hydraulic System

A braking system that uses air pressure to actuate hydraulic brakes.

Canister-spring Brake

A brake system that uses a canister to hold a compressed spring for emergency and parking brake applications.