The Practice of Price Discrimination Has Which of the Following

question 106

Multiple Choice

The practice of price discrimination has which of the following effects?

• A) Groups with the higher elasticity of demand will pay higher prices.
• B) Groups with the lower elasticity of demand will pay higher prices.
• C) With price discrimination, total output and allocative efficiency will fall.
• D) Groups will pay identical prices that are exactly equal to the firm's marginal cost.

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Definitions:

Bond Financing

A method of raising capital through the issuance of bonds which are to be repaid at a specified maturity date along with periodic interest payments.