When Two or More Divisions Mark Up Prices in Excess

question 131

Multiple Choice

When two or more divisions mark up prices in excess of marginal cost:

• A) double marginalization occurs.
• B) two-part pricing occurs.
• C) second-degree price discrimination occurs.
• D) None of the answers are correct.

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Definitions:

Simplify

To simplify means to make something less complex or easier to understand, often by reducing it to its basic components.

Exponent Laws

Mathematical rules governing operations involving powers, such as multiplication and division of exponents.

Simplify

To make a complex problem or equation easier to understand or solve by reducing it to its basic components.

Evaluate

The process of determining the value of an algebraic expression by substituting the values of the variables and performing the operations indicated.