When a firm engages in __________, every unit of output is sold at the same price; when a firm engages in ___________, different consumers are charged different prices for the same good.
A)arbitrage; uniform pricing
B)price discrimination; uniform pricing
C)uniform pricing; price discrimination
D)surplus capturing; price discrimination

Question

Quizplus · Accepted Answer

The first blank refers to uniform pricing, where every unit of output is sold at the same price. The second blank refers to price discrimination, where different consumers are charged different prices for the same good. Therefore, the correct answer is C, uniform pricing; price discrimination. The first blank describes an environment in which every unit of output is sold at the same price, which is the definition of uniform pricing. The second blank describes an environment in which different consumers are charged different prices for the same good, which is the definition of price discrimination. Therefore, the correct answer is C.

When a Firm Engages in __________, Every Unit of Output