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Author Question: Suppose group price discrimination is possible but a firm chooses not to and sets the same price in ... (Read 123 times)

jc611

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on: Jul 1, 2018
Suppose group price discrimination is possible but a firm chooses not to and sets the same price in each market. As a result
 
  A) price elasticity of demand is the same in each market.
  B) the price-inelastic market will buy zero units.
  C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market.
  D) the deadweight loss is less than if the firm price discriminated.

Question 2

If a firm does NOT know its rival's profit function, then we consider that information to be
 
  A) irrelevant in deciding its best strategy.
  B) private.
  C) common knowledge.
  D) Pareto sub-optimal.


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vseab

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

B


jc611

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Reply 2 on: Jul 1, 2018
Excellent

carlsona147

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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