Perfect Price Discrimination Occurs When

question 24

Multiple Choice

Perfect price discrimination occurs when:

• A)each customer is charged the maximum price that each is willing and able to pay.
• B)two classes of customers are charged different prices as they have different elasticities of demand.
• C)senior citizens are offered restaurant discounts.
• D)the firm sets MR < MC for each class of customers.
• E)the firm charges same price to different customers so that it is equal to the equilibrium price.

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Definitions:

Behaviors

Observable actions or reactions of individuals or groups in response to external or internal stimuli.

Stakeholder Responsibility

The obligation of an organization to consider the interests and wellbeing of all its stakeholders in its decisions and actions.

Stakeholder Ethics

Principles and standards guiding how stakeholders' interests should be considered and addressed in decision-making processes.

Proactive Commitment

The dedication to take initiative and anticipate future problems, needs, or changes.