Price Discrimination Is Based on Self-Selection

question 25

Multiple Choice

Price discrimination is based on self-selection

• A) When a firm can distinguish consumers with a high versus low willingness to pay
• B) When a firm offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay
• C) When a monopolist knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit
• D) When a firm cannot distinguish consumers with a high versus low willingness to pay

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Definitions:

Electromagnetic Field

A physical field produced by electrically charged objects. It affects the behavior of charged objects in the vicinity of the field.

Inductive Proximity Sensor

A type of sensor that is used to detect the presence of metallic objects without physical contact by utilizing the principles of induction.

Light Beam

A stream of light particles (photons) traveling in the same direction, used in various applications including communication and measurement.