Perfect Price Discrimination Occurs When

question 24

Multiple Choice

Perfect price discrimination occurs when:

• A)each customer is charged the maximum price that each is willing and able to pay.
• B)two classes of customers are charged different prices as they have different elasticities of demand.
• C)senior citizens are offered restaurant discounts.
• D)the firm sets MR < MC for each class of customers.
• E)the firm charges same price to different customers so that it is equal to the equilibrium price.

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Definitions:

Egg Cells

The female reproductive cells or ova, which when fertilized by sperm, lead to the development of an embryo.

Genes

DNA segments that serve as the key functional units in hereditary transmission, determining aspects of an individual's physical and possibly behavioral traits.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products.

Nutrients

Essential substances obtained from food that are necessary for the body to grow, maintain health, and carry out its functions.