Author Question: Price discrimination results in _____________ than would be observed under a single-price monopoly. ... (Read 58 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?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

For a complete list of videos, visit our video library