Which of the Following Is True of Price Discrimination

question 47

Multiple Choice

Which of the following is true of price discrimination?

• A)It refers to the illegal movement of commodities from one country to another.
• B)It refers to the practice of charging different prices to different consumers for the same product.
• C)It is practiced by competitive firms to enjoy long run profits.
• D)It refers to the practice of buying a good at a low price and selling it at a higher price.

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Definitions:

Entrepreneur

An individual who starts and runs a business, taking on financial risks in the hope of profit.

Karl Marx

A 19th-century philosopher, economist, and political theorist whose works are the foundation of the theory of socialism and communism.

Exploiter

An individual or entity that takes unfair advantage of others, often in a business or economic context, to gain benefits at their expense.

MRP of Land

Marginal Revenue Product of Land denotes the additional revenue generated from the utilization of an additional unit of land, underpinning its value in production.