Consider the Following Actions Undertaken by a Firm

question 66

Multiple Choice

Consider the following actions undertaken by a firm:
a.charging the same price for products of different quality
b.charging different prices to different consumers for the same product when the variation cannot be explained by cost differences
c.charging different prices for products of different qualities
d.charging a lower price to match a competitor's price
The actions that will be considered price discrimination are

• A)a, b, c, and d
• B)a, b, and d only
• C)b and d only
• D)a and b only

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Definitions:

Supply

The total amount of a product or service that is available for purchase at any given price.

Labor Union

A collective organization of employees who bargain as a unit with employers.

Autoworkers

Employees in the automotive industry who are involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Automobiles

Motor vehicles with four wheels designed primarily for passenger transportation on roads.