Which of the Following Is Not an Example of Price

question 508

Multiple Choice

Which of the following is not an example of price discrimination by a firm?

• A)children's meals at a restaurant
• B)a natural gas company charging customers a higher rate in the winter than in the summer
• C)a senior citizens' discount
• D)coupons in the Sunday newspaper

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Equilibrium

When aggregate demand equals aggregate supply.

MC = MR

A principle in economics stating that profit maximization occurs when a firm's marginal cost (MC) equals its marginal revenue (MR).

Marginal Revenue

The additional income gained from selling one more unit of a good or service.