Question

QUESTION 13

Third-degree price discrimination is discrimination among

	a.	units.
	b.	quantities.
	c.	buyers.
	d.	prices.

4 points   

QUESTION 14

Second-degree price discrimination is discrimination among

	a.	units.
	b.	quantities.
	c.	buyers.
	d.	prices.

4 points   

QUESTION 15

Which of the following is a necessary condition for price discrimination to hold?

	a.	The seller must be a price searcher.
	b.	The seller must be able to distinguish between customers willing to pay different prices.
	c.	Reselling the product must be extremely costly or must not be possible
	d.	All of the above.

4 points   

QUESTION 16

In general, electric, gas, and water companies are examples of __________ monopolies.

	a.	unregulated
	b.	patent
	c.	natural
	d.	government

4 points   

QUESTION 17

The term "arbitrage" refers to

	a.	buying a good in a market where its price is high and selling the good in another market where its price is lower.
	b.	buying a good in a market where its price is low and selling the good in another market where its price is higher.
	c.	selling a good in a market where its price is high.
	d.	selling a good in a market where its price is low.

4 points   

QUESTION 18

To engage in price discrimination, it is necessary that

	a.	a seller be a price searcher.
	b.	there be no arbitrage.
	c.	Product has close no substitutes
	d.	all of the above
	e.	none of the above

Answer 1

13) Third degree price discrimination is among

Option(C) Buyers as different group of buyers are charged different prices based on their willingness to pay

14) Second-degree price discrimination is discrimination among

Option(B) Quantities as the producer charges different prices for different quantity

15) Option(D) All of the above

16) In general, electric, gas, and water companies are examples of _ monopolies.15) Option (D) All of the above

natural Option(C)