Author Question: When firms price discriminate, they (Read 113 times)

jc611 · **on:** Mar 14, 2021

Question 1

If a firm faces a flat demand curve,
◦ it cannot engage in price discrimination.
◦ it can only engage in two-part tariffs.
◦ it can only engage in perfect price discrimination.
◦ None of these.

Question 2

When firms price discriminate, they
◦ get additional surplus from consumers who would have bought at the profit-maximizing uniform price but lose sales because of the higher prices.
◦ maintain surplus from existing consumers but pick up additional consumers that would not have bought at the profit-maximizing uniform price.
◦ get additional surplus from consumers who would have bought at the profit-maximizing uniform price.
◦ None of these.

rosiehomeworddo · **Reply #1 on:** Mar 14, 2021

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