In the Context of This Chapter,how Can Price Discrimination Increase

question 74

Multiple Choice

In the context of this chapter,how can price discrimination increase profits for firms and increase the welfare of society?

• A) It can't; those are two mutually exclusive goals.
• B) When firms earn higher profits,governments collect additional tax revenue.
• C) When firms earn higher profits,they are able to employ more workers,leading to a more prosperous economy.
• D) Firms are able to capture more revenue by selling their product to more consumers,which means that more buyers are able to acquire a desired product.
• E) It can't; welfare-minded societies tend to overregulate business profits.

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Definitions:

Schema

A cognitive framework or concept that helps organize and interpret information, allowing individuals to make sense of the world.

Knowledge Structure

The way in which information and knowledge are organized and stored in the mind.

Associations

Mental connections between concepts, events, or objects, which often influence memory and learning.

William James

A pioneering American psychologist and philosopher who was a leading thinker of the late 19th century, known for his work in pragmatism and functional psychology.