Price discrimination occurs when: a. firms maximize their profit ...

[tichca]

Price discrimination occurs when:
 a. firms maximize their profit by setting price equal to marginal cost.
  b. a seller charges different prices to different consumers of the same product or service.
  c. a seller charges the same price to consumers of a different product or service.
  d. a seller charges different prices to consumers, discriminating by race or gender of the consumer.

Question 2

Suppose you have spent your entire budget and for all the goods you purchase the marginal utilities per dollar spent are identical. Which of the following is true?
 a. You are being irrational.
  b. You can increase your utility by reallocating your income.
  c. You will reduce your utility if you allocate income in any other way.
  d. You are minimizing your marginal utility.
  e. You can avoid diminishing marginal utility.

[welcom1000]

Answer to Question 1

b

Answer to Question 2

c

[tichca]

Thanks for the timely response, appreciate it

[olderstudent]

Excellent