Pizza Joints Often Offer Substantially Lower Prices for Pizza Picked

question 69

Multiple Choice

Pizza joints often offer substantially lower prices for pizza picked up at the shop compared to delivered pizza prices.This may be an attempt at

• A) perfect price discrimination.
• B) group price discrimination.
• C) quantity discrimination.
• D) second-degree price discrimination.

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Definitions:

Maximum Utility

The greatest level of satisfaction or benefit that a consumer can obtain from consuming goods and services.

Pocket Money

A small amount of money given to children by parents as an allowance or for completing tasks, which can be used for personal expenses.

MU y/ Pᵧ

The ratio of the marginal utility of good Y (MUy) to its price (Pᵧ), indicating the additional satisfaction per unit of currency spent.

Maximize Utility

The economic objective of consumers to achieve the highest level of satisfaction possible from their consumption decisions, given their income and the prices of goods and services.