The owner of a small company has heard
that he can make higher profits if he price
discriminates. Knowing that your study of economics has
made you wise in the way of economics, he asks your
advice. What of the following should you tell
Any sort of discrimination is bad, so it should forget
the whole thing.
In order to price discriminate, the company must find
a way to separate buyers by how much they are willing
Price discrimination is only possible
for firms in markets that are perfectly
Price discrimination only is
worthwhile if a company has an upward-sloping marginal
Which of the following situations
illustrates the economic concept of price
Colleges offer scholarships to attract
students from low-income families.
A rise in the price of gasoline
affects the poor more than the rich.
A speculator attempts to buy when
prices are low and sell when they are high.
Land in the center of a city is
generally much more valuable than land in the