If Japanese Producers Sell Computer Chips at a Higher Price

question 323

Multiple Choice

If Japanese producers sell computer chips at a higher price in the United States than in Japan, and if there is no cost difference in producing or transporting the chips, the Japanese producers would be practicing

• A) cartel pricing.
• B) price discrimination.
• C) simple monopoly behavior.
• D) price sampling.

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Definitions:

Total Revenue

The overall amount of money generated by a business from its activities, such as sales of goods or services, before any expenses are subtracted.

Marginal Revenue

The additional income obtained from selling one more unit of a product or service.

Marginal Cost

The increment in total pricing necessary for the creation of one more unit of any good or service.

Marginal Revenue

The supplementary earnings obtained by selling an extra unit of a good or service.