A Firm Can Be Identified as Practicing Price Discrimination When

question 172

Multiple Choice

A firm can be identified as practicing price discrimination when

• A) consumers engage in comparison shopping to find the lowest advertised price.
• B) firms behave as price takers,whereas consumers react with price-making behavior.
• C) buyers in a perfectly competitive market are able to influence the prices that firms set.
• D) producers pass on differences in costs to those price-conscious consumers willing to buy in bulk.
• E) producers set different prices for distinct groups of consumers,despite selling identical products to each group.

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Definitions:

Aristotle

An ancient Greek philosopher and scientist, whose works covered a wide range of subjects including physics, metaphysics, poetry, theater, music, logic, rhetoric, linguistics, politics, government, ethics, biology, and zoology.

Plato

An ancient Greek philosopher, a student of Socrates and teacher of Aristotle, known for his contributions to metaphysics, epistemology, and ethics.

Industrial-organizational Psychology

The application of psychological theories, principles, and research methodologies in workplace environments to solve organizational and human resource problems.

Clinical Psychology

A branch of psychology that studies, assesses, and treats people with psychological disorders.