When a firm uses a form of quantity discrimination that charges ...

[formula1]

When a firm uses a form of quantity discrimination that charges large purchasers less it is the high quantity purchasers that generate most profit.
 
  Indicate whether the statement is true or false

Question 2

When neither player has a dominant strategy,
 
  A) game theory will not provide information.
  B) no Nash-Equilibrium exists.
  C) at least one Nash-Equilibrium exists.
  D) the game cannot be analyzed.

[popopong]

Answer to Question 1

False. Most profit is generated by the fact that the firm is able to charge a high price to purchasers of low quantities and cut in their consumer surplus.

Answer to Question 2

C

[formula1]

Gracias!

[kalskdjl1212]

Thanks for the timely response, appreciate it