A Subtle Form of Price Discrimination Is for Firms to Offer

question 19

Multiple Choice

A subtle form of price discrimination is for firms to offer:

• A) the same version of a product for the purpose of separating customers into different markets.
• B) the same version of a product for the purpose of separating customers into the same market.
• C) different versions of a product for the purpose of separating customers into different markets.
• D) different versions of a product for the purpose of separating customers into the same market.

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Definitions:

Households

The basic economic units consisting of all individuals who live together and make joint decisions on consumption and labor supply.

Firms

Entities that produce goods or provide services, typically with the aim of making a profit.

Monetary Policy

The actions of a central bank, currency board or other regulatory authorities that determine the size and rate of growth of the money supply, which in turn affects interest rates.

Circular-Flow Diagram

A visual model showing the interactions between households and firms in an economy, illustrating the flows of goods and services and factors of production in markets.