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:

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Estradiol

A major form of estrogen, a hormone involved in the development and regulation of the female reproductive system and secondary sexual characteristics.

Endometrium

The inner lining of the uterus that thickens during the menstrual cycle in preparation for potential pregnancy.

Progesterone

A steroid hormone released by the corpus luteum and placenta, playing a key role in the menstrual cycle and maintaining the early stages of pregnancy.