Which of the following situations would be examples of price discrimination?
A) United Airlines charges customers who book 14 days ahead a lower price than those who don't.
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 SUVs a $2.00 "large vehicle" 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
Q12: What is a patent?
Q57: After the first unit, a monopolist's marginal
Q58: A monopolist will never produce a level
Q59: Recall the Application about setting the price
Q60: A monopolist picks the quantity of output
Q61: Recall the Application about allegations that the
Q63: Suppose that it would cost a firm
Q64: The merits of a patent system is
A)
Q65: Since patents lead to lower quantities and
Q67: When governments grant patents
A) producers earn profits
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