Which of the following about price discrimination is true?
A) A price-discriminating seller will charge consumers with an elastic demand a lower price than consumers with an inelastic demand.
B) A firm must face a horizontal demand curve for its product in order to engage in effective price discrimination in a market.
C) Price discrimination always harms consumers and helps sellers in the short run but in the long run, consumers benefit at the expense of sellers.
D) A seller must have a monopoly in order to gain from price discrimination.
Correct Answer:
Verified
Q124: Which of the following is not a
Q125: A firm that uses price discrimination to
Q126: Price discrimination refers to a system of
Q127: In a market economy, profits
A) encourage productive
Q128: A practice whereby a seller charges different
Q130: For effective price discrimination to occur, a
Q131: In order to prosper, entrepreneurs must
A) have
Q132: In order for effective price discrimination to
Q133: A major fruit juice manufacturer failed in
Q134: Which of the following is a necessary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents