od/ibis/view.php?id 188U3 nline S... G deadpool Google Se TripAdvisor incorrect
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od/ibis/view.php?id 188U3 nline S... G deadpool Google Se TripAdvisor incorrect Question 8 of 19 Map Sapling Classify the statements below as either true or false False True Price discrimination only Airlines are often able occurs with natural monopolies to price discriminate. Perfect price discrimination Firms do not have incentive to price discriminate because is when perfectly competitive firms charge some people it results in some groups paying a lower price than others higher prices than others. All else equal, single price Price discrimination is illegal monopolists earn lower profits under all circumstances than firms that can price discriminate. incorrect. Sometimes firms can charge each consumer the most that they would be willing to pay for a good. What is the name for this type of price discrimination? Double check your other choices tooExplanation / Answer
Under True:
1. Airlines are ofte able to price discriminate --- True
2. Perfect price discrimiation is when perfectly compettve firms charge some people higher prices tha others--True
3. All Else equal, single price monopolist will earn lower profits than firms that can price discriminate --False
( If a monopolist can price its products according to who the buyers are, then it can significantly increase its profits by setting the profit-maximizing price for each market segment.)
Under False:
1. Price discrimiation ocurs with natural monopolies -- True
(Only monopolies can practice price discrimination, because otherwise competition would prevent price discrimination by setting competitive prices.)
2. Firms do not have incetive to price discriminate because it results in some group paying a lower price than others. ---False
3. Price discrimination is illegal under all circumstaces -- False
(Price discrimination is illegal if it's done on the basis of race, religion, nationality, or gender, or if it is in violation of antitrust or price-fixing laws).
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