Price Discrimination Is the

question 83

Multiple Choice

Price discrimination is the

• A) refusal by a firm to sell to all customers.
• B) selling of a given product at more than one price when the price differences reflect cost differences.
• C) pricing of a product so that not everyone can afford it.
• D) selling of a given product at more than one price when the price difference is unrelated to cost differences.

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Definitions:

Dominant Strategies

In game theory, strategies that are best for a player regardless of what the other players choose.

Credible Threat

A statement or action that is believable and carries the weight of possible enforcement, often used in negotiations or strategic situations.

Economies of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where a firm's per unit costs increase as it increases production, typically due to inefficiencies.