Suppose Group Price Discrimination Is Possible; However,a Firm Sets the Same

question 61

Multiple Choice

Suppose group price discrimination is possible; however,a firm sets the same price in each market.As a result,

• A) price elasticity of demand is the same in each market.
• B) the price-inelastic market will buy zero units.
• C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market.
• D) the deadweight loss is less than if the firm price discriminated.

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Definitions:

Monthly Sales

The total value or volume of sales transactions that a business completes within a single month, often used to assess performance trends.

Net Operating Income

A company's income after operating expenses have been deducted but before deducting interest expenses and taxes.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much of sales revenue is available to cover fixed costs and generate profit.

Target Profit

The desired level of financial gain set by a business for a specific period, guiding pricing strategies and operational decisions.