A Block Tariff Is a Form Of

question 4

Multiple Choice

A block tariff is a form of:

• A)first-degree price discrimination
• B)second-degree price discrimination
• C)third-degree price discrimination
• D)tying

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Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford to purchase with a given budget, at given prices.

Risk Averse

Describes individuals or entities that prefer to avoid risk, often opting for safer investments even with potentially lower returns.

Indifference Curve

A curve representing all combinations of goods or services among which a consumer is indifferent, showing different combinations that provide the same level of utility to the consumer.

Expected Return

The anticipated profit or loss from an investment, taking into account the possibility of various outcomes.