Which of the following firms are examples of price discrimination?
A) United Airlines charges customers who book 14 days ahead a lower price than those who donʹt.
B) Chevron gas stations charges customers 20 cents more per gallon if they choose the premium grade over the regular unleaded.
C) The local carwash charges drivers of minivans and large SUVʹs a $2.00 ʺlarge vehicleʺ surcharge.
D) GEICO, an insurance company, charges higher rates to those who received more than one speeding ticket in the last 6 months.
Correct Answer:
Verified
Q65: Since patents lead to lower quantities and
Q67: When governments grant patents
A) producers earn profits
Q71: Society gains from a patent if the
Q73: All patent protected products would not have
Q74: What would happen if the government chooses
Q80: Why does the government grant patents universally
Q96: Part of the efficiency cost resulting from
Q97: In the case of rent-seeking behavior in
Q98: Suppose that it would cost a firm
Q100: Monopoly reduces market efficiency compared to perfect
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