Author Question: Price discrimination results in _____________ than would be observed under a single-price monopoly. ... (Read 101 times)

mwit1967

  • Hero Member
  • *****
  • Posts: 501
Price discrimination results in _____________ than would be observed under a single-price monopoly.
 a. higher output and lower costs
  b. lower output and higher costs
  c. higher output and higher costs
  d. lower output and lower costs

Question 2

Economic theory predicts that a profit maximizing car rental agency with some market power would set its prices in what way?
 a. Charge the same for both weekday and weekend rentals.
  b. Charge more for weekend rentals and less for weekday rentals.
  c. Charge more for rentals during the week and less for weekend rentals.



sultana.d

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

a. higher output and lower costs

Answer to Question 2

c. Charge more for rentals during the week and less for weekend rentals. Apply concept of price discrimination to another market.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

For a complete list of videos, visit our video library