In Situations Where Businesses Discriminate in Response to the Preferences

question 59

Multiple Choice

In situations where businesses discriminate in response to the preferences of consumers,discrimination:

• A) is consistent with efficient markets.
• B) will be eliminated by the market.
• C) will not persist even though it's what the customers want.
• D) is not consistent with efficient markets.

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Definitions:

Short Run

Within the field of economics, a timeframe where a company has at least one input that remains constant and unalterable.

Total Revenue

The entire revenue a company earns from selling products or services before deducting any costs.

Purely Competitive

A market structure characterized by many buyers and sellers, freely entering and exiting the market, with all firms selling identical or nearly identical products.

Unit Price

The cost per unit of a product or service, making it easier to compare the value of similar items.