ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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producing in the inelastic portion of its demand curve to raise its price and increase total revenue
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a price taker
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able to separate consumers into different groups
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experiencing economies of scale in the relevant range of production
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Detailed explanation-1: -producing in the inelastic portion of its demand curve to raise its price and increase total revenue. a price taker. able to separate consumers into different groups based on demand elasticities. More items
Detailed explanation-2: -In order for price discrimination to work, businesses must prevent resale, must be able to operate in an imperfect market, and must demonstrate elasticities of demand.
Detailed explanation-3: -Answer: Price discrimination is possible only when the buyers from different sub-markets are willing to purchase the same product at different prices. If the elasticity of demand is the same, then the effect of the price change on the buyer will be identical too.
Detailed explanation-4: -Answer and Explanation: The answer is B and E. Price discrimination is used to increase profits by charging smaller customers larger prices and larger customers slightly discounted prices.
Detailed explanation-5: -Price discrimination. The act of selling the same product at different prices to different buyers is known as price discrimination. This situation prevails under monopoly as they can charge different prices from different buyers easily.