In Economics,the Term "Lemon" Is Used to Describe

question 53

Multiple Choice

In economics,the term "lemon" is used to describe:

• A)any product that commands a very high market price.
• B)any product which repeatedly breaks down.
• C)a product for which there is an excess demand in the market.
• D)a product that most people do not need.

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Definitions:

Price Discriminate

The practice of selling the same product to different customers at different prices, based on what each customer is willing to pay.

Profit Earn

The income a business receives after all expenses and costs are subtracted from total revenue.

Price Discrimination

The practice of charging different prices for the same product or service to different consumers, based on their willingness to pay.

Pure Monopoly

refers to a market structure where a single company or entity has exclusive control over a particular good or service, eliminating direct competition.