Question

What is perfect price​ discrimination?

a. charging consumers different prices across time.
b. charging consumers who are less price sensitive a lower price and consumers who are more price sensitive a higher price.
c. charging consumers whose demand is less elastic a higher price and consumers whose demand is more elastic a lower price.
d. charging every consumer a different price equal to their willingness to pay.
e. charging consumers a price equal to consumer surplus. perfect price discrimination is
a. unlikely to occur because firms are typically able to keep consumers who buy a product at a low price from reselling it.
b. unlikely to occur because firms typically do not know how much each consumer is willing to pay.
c. likely to occur because it results in economic efficiency.
d. likely to occur because it results in higher profits.
e. both a and
b. is perfect price discrimination economically​ efficient? perfect price discrimination is
a. inefficient because it converts into producer surplus a portion of consumer surplus.
b. inefficient because it results in no consumer surplus.
c. efficient because it converts into producer surplus what had been consumer surplus and deadweight loss.
d. inefficient because it restricts output below the equilibrium level and creates deadweight loss.
e. efficient because it converts into producer and consumer surplus what had been deadweight loss?

Answer 1

What is perfect price​ discrimination? Charging every consumer a different price equal to their willingness to pay. Perfect price discrimination is unlikely to occur because firms typically do not know how much each consumer is willing to pay. Perfect price discrimination is defined as a company or person charging consumers different prices for the same good or service depending on what they are willing to pay for the product. In reality, no company will be able to accurately depict what they think each consumer that wants to purchase the product is willing to pay, so this is very unlikely to occur.