Author Question: Perfect price discrimination occurs when: A) a firm charges wealthier buyers a lower price. B) ... (Read 221 times)

asmith134 · **on:** Jun 29, 2018

Perfect price discrimination occurs when:

A) a firm charges wealthier buyers a lower price.
B) a firm charges each buyer exactly their willingness to pay.
C) a firm charges the same buyer different prices at different points of time.
D) a firm charges different buyers according to the characteristic of their purchase.

Question 2

The table above gives the production possibilities frontier for a nation that produces wheat and soybeans.

Use the information in that table to complete the table below, which has in it the opportunity costs of moving from one production point to another. Do not forget to note the units of the opportunity costs. Movement from Opportunity cost Movement from Opportunity cost A to B D to C B to C C to B C to D B to A

Christopher · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

Movement from Opportunity cost
(bushels of soybeans per bushels of wheat) Movement from Opportunity cost
(bushels of wheat per bushels of soybeans)
A to B 0.22 D to C 1.00
B to C 0.40 C to B 2.50

The table above gives the opportunity costs. The units of the opportunity costs are in the column headings.