Price Discrimination Is More Common in Service Industries Because

question 116

Multiple Choice

Price discrimination is more common in service industries because

• A) low-price buyers will find it virtually impossible to resell the products of such industries to high-price buyers.
• B) the costs of providing such industries' products to different groups of buyers vary dramatically.
• C) the price elasticity of demand is the same for all groups of buyers in these industries.
• D) all firms in these industries have significant monopoly power over price.

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Definitions:

B. F. Skinner

An American psychologist and behaviorist best known for his work in developing the theory of operant conditioning.

A. Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

S. Freud

The Austrian neurologist Sigmund Freud founded the therapeutic approach of psychoanalysis, where psychopathological issues are addressed through a dialogue between the analyst and the patient.

Classical Conditioning

A learning process in which two stimuli are continuously coupled; the response, initially precipitated by the second stimulus, is ultimately precipitated by the first stimulus by itself.