Author Question: When a firm charges each customer the maximum price that the customer is willing to pay, the firm ... (Read 114 times)

Ebrown · **on:** Jul 1, 2018

When a firm charges each customer the maximum price that the customer is willing to pay, the firm

A) engages in a discrete pricing strategy.
B) charges the average reservation price.
C) engages in second-degree price discrimination.
D) engages in first-degree price discrimination.

Question 2

An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket?

A) MRSxy is at a maximum.
B) Px/Py = money income.
C) MRSxy = money income.
D) MRSxy = Px/Py.
E) all of the above