This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose group price discrimination is possible but a firm chooses not to and sets the same price in ... (Read 120 times)

jc611

  • Hero Member
  • *****
  • Posts: 552
on: Jul 1, 2018
Suppose group price discrimination is possible but a firm chooses not to and sets the same price in each market. As a result
 
  A) price elasticity of demand is the same in each market.
  B) the price-inelastic market will buy zero units.
  C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market.
  D) the deadweight loss is less than if the firm price discriminated.

Question 2

If a firm does NOT know its rival's profit function, then we consider that information to be
 
  A) irrelevant in deciding its best strategy.
  B) private.
  C) common knowledge.
  D) Pareto sub-optimal.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vseab

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

B


jc611

  • Member
  • Posts: 552
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

samiel-sayed

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

A group of capped langurs. A group of capped langurs.
The Effect of Group Size on Relationships The Effect of Group Size on Relationships
Management Information Systems: Managing the Digital Firm, 15th Edition Management Information Systems: Managing the Digital Firm, 15th Edition
Group of Ants Group of Ants
"The Department of Agriculture came out today with its prediction for food price "The Department of Agriculture came out today with its prediction for food price
Video: Muscle Twitch and Muscle Tension - Motor unit size and force

For a complete list of videos, visit our video library