Perfect Price Discrimination

question 38

Multiple Choice

Perfect price discrimination:

• A)allows each customer to pay exactly what they are willing and able to pay.
• B)maximizes consumer surplus.
• C)is not efficient.
• D)minimizes producer surplus.

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Definitions:

CNC

Acronym for Computer Numerical Control, a process used in manufacturing that involves the use of computers to control machine tools.

Computer-Integrated Manufacturing

A system of manufacturing in which the entire production process is controlled by computer, from the initial design and manufacturing of the product to its final delivery.

Flexible Manufacturing System

An approach to manufacturing that allows for the easy adaptation of processes and machines to make different products or parts.

Inventory Control

The processes and strategies used to manage the ordering, storing, and use of components or products to minimize costs and meet customer demand.