When a monopolist is able to sell its product at different prices ...

[Haya94]

When a monopolist is able to sell its product at different prices to different customers, it is likely engaging in:
 a. quality-adjusted pricing.
  b. price discrimination.
 c. price differentiation.
 d. illegal activities.

Question 2

The trade-creation effect refers to:
 a. the outcome of a preferential trade agreement that reduces economic efficiency by shifting production to a higher-cost producer.
  b. the effect of an increase in the quantity of imports relative to the effect of a tariff applicable to all imports.
  c. the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home.
  d. the effect of a diversion of production to a country that has comparative advantage due to a free trade agreement.
  e. the effect of a decrease in the quantity of exports relative to the effect of a subsidy applicable to all exports.

[Cnarkel]

Answer to Question 1

b

Answer to Question 2

c

[Haya94]

Excellent

[FergA]

Gracias!