Which of the following statements concerning price discrimination among consumers with different price elasticities is true ?

A. Consumers are charged different prices because costs vary among consumers.

B. A firm cannot price-discriminate unless it can identify different consumer types.

C It is possible for a competitive firm to price-discriminate.

D Price discrimination occurs when some ethnic groups can get service and others cannot.

E. A firm can price-discriminate only if it has market power.

2. When a firm price-discriminates among consumers with different price elasticities of demand, it

A .has the same price-cost margin in each market.

B. sets up an auction to determine who will pay the most

C. maximizes profit in one market while taking losses in another.

D. equates price and marginal cost in each market.

E. creates a deadweight loss in each market.

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1 B The necessary conditions for effective price discr... View the full answer