Author Question: When a monopolist is able to sell its product at different prices to different customers, it is ... (Read 72 times)

Haya94 · **on:** Jun 30, 2018

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.