Which of the Following Markets Best Illustrates the Practice of Price

question 103

Multiple Choice

Which of the following markets best illustrates the practice of price discrimination?

• A)The airline market.
• B)The fast-food market.
• C)Wheat farming.
• D)The personal computer market.

---

Definitions:

Average Cost Curve

A graphical representation showing how the cost per unit of producing goods changes with changes in the volume of goods produced, highlighting economies and diseconomies of scale.

Market Level Supply

The total quantity of a good or service that producers are willing to sell across the entire market at a given price level.

Marginal Costs

The swelling of total charges resulting from generating an extra unit of a good or service.

Elasticity of Market Supply

An indicator of the extent to which the supply of a product varies following a price adjustment.