Author Question: A firm practicing group price discrimination that has constant marginal cost will A) maximize ... (Read 40 times)

wrbasek0 · **on:** Jul 1, 2018

A firm practicing group price discrimination that has constant marginal cost will

A) maximize total profit by maximizing profit for each group separately.
B) will charge the same price to all groups.
C) will act like a monopoly and treat all groups the same.
D) sets p = MC.

Question 2

What is the intuition that an expansion of an individual's budget set represents a gain?

A) More options are preferred to less.
B) Money is the root of all happiness.
C) Information is power.
D) Scarcity is avoidable with prosperity.