Which of the following correctly describes price discrimination?
a. Selling different products to different people for the same price.
b. Selling different products to identical people for different prices.
c. Selling the same product to different people for different prices.
d. Selling the same product to the same person for the same price.
Question 2
A utility-maximizing consumer is currently spending all of his/her income on two products, A and B. The MU of the last unit of A consumed is 50, the price of A is 25, and the price of B is 10 . The MU of the last unit of B consumed is:
a. 50.
b. 5.
c. 2.
d. 20.
e. cannot determine from this limited information
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