Price Discrimination Is Based on Self-Selection

question 30

Multiple Choice

Price discrimination is based on self-selection:

• A) when a firm can distinguish consumers with a high versus low willingness to pay.
• B) when a firm offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay.
• C) when a monopolist knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit.
• D) when monopolists decide for themselves whether to engage in price discrimination.

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Definitions:

Larger Territories

Expansive areas or regions under the control of a particular group, organism, or government, often associated with specific advantages or resources.

Causal Inferences

Causal inferences are conclusions about cause-and-effect relationships, often drawn from experiments or observational studies, looking at how one variable influences another.

Right Hemisphere

The half of the brain that controls the left side of the body, associated with creativity, spatial ability, and the processing of visual and auditory stimuli.

Left Hemisphere

The left side of the brain, primarily responsible for controlling the right side of the body and functions such as speech, logic, and analytical thinking.