An Implication of the Taste-For-Discrimination Model Is That

question 185

Multiple Choice

An implication of the taste-for-discrimination model is that

• A) discrimination can lower a firm's production costs.
• B) discrimination will move a firm along its declining average total cost curve.
• C) other things equal, nondiscriminating firms will have lower production costs than discriminating firms.
• D) other things equal, discriminating firms will have lower production costs than nondiscriminating firms.

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Definitions:

Inelastic Demand

A market situation where the quantity demanded of a product does not change significantly when its price varies.

Price Elasticity

A measure of how much the demand for a product changes in response to a change in its price.

Demand

The total quantity of a product or service that consumers are willing and able to purchase at a given price.

Assessments of Value

The process of evaluating or estimating the worth, significance, or effectiveness of an item, service, or process.