stion $1(1$ point$)$

Third$-$degree price discrimination involves

Question $1$ options:

charging each consumer the same two part tariff.

the use of increasing block rate pricing.

charging lower prices the greater the quantity purchased.

harging different prices to different groups based upon differences in elasticity of demand.

Question $2(1$ point$)$

A third$-$degree price discriminating monopolist can sell its output either in the local market or on an internet auction site $($or both$).$ After selling all of its output, the firm discovers that the marginal revenue earned in the local market was $$20$ while its marginal revenue on the internet auction site was $$30.$ To maximize profits the firm should

Question $2$ options:

have sold more output in the local market and less at the internet auction site.

do nothing until it acquires more information on costs.

have sold less output in the local market and more on the internet auction site.

sell less in both markets until marginal revenue is zero.

sell more in both markets until marginal cost is zero.

Question $3(1$ point$)$

Second$-$degree price discrimination is the practice of charging

Question $3$ options:

each customer the maximum price that he or she is willing to pay.

the reservation price to each customer.

different groups of customers different prices for the same products.

different prices for different blocks of the same good or service.

Question $4(1$ point$)$

Question $4$ options:

$0$

$1600$

$33200$

$12,800$

Question $5(1$ point$)$

An example of first$-$degree price discrimination would occur

Question $5$ options:

If a sales agent illegally sold a commodity to a federal agent above the competitive market price.

when you sell something illegally to an individual through the mail.

if a car salesman could accurately guess the maximum amount each customer would be willing to pay for a vehicle and charge him$/$her that price.

when you order $12$ of something online and you pay less per unit than if you had bought only one.

Question $6(1$ point$)$

An example of second$-$degree price discrimination is

Question $6$ options:

when you get an "early bird" discount by eating at a restaurant before $6$:$00$ pm$.$

when you sell something illegally to an individual through the mail.

when you segment the market and charge individuals of different ages different prices for the same product or service.

when you order $12$ of something online and you pay less per unit than if you had bought only one.

Question $7(1$ point$)$

If a firm facing the demand curve P $=10-$ Q has zero marginal costs and is a perfect price discriminator $,$ what will profits be if fixed costs are $12?$

Question $7$ options:

$10$

$12$

$13$

$38$

None of the above

Question $8(1$ point$)$

Suppose that the marginal cost of an additional ton of steel produced by the Japanese is the same whether the steel is set aside for domestic use or exported abroad. If the price elasticity of demand for steel is greater abroad than it is in Japan, which of the following will be correct?

Question $8$ options:

The Japanese will sell steel at a higher price abroad than they will charge domestic users

The Japanese will sell more steel in Japan than they will sell abroad.

The Japanese will sell more steel abroad than they will sell in Japan.

The Japanese will sell steel at a lower price abroad than they will charge domestic users.

Insufficient information exists to determine whether the price or quantity will be higher or lower abroad.

Question $9(1$ point$)$

A firm sells an identical product to two groups of consumers, A and B$.$ The firm has decided that third$-$degree price discrimination is feasible and wishes to set prices that maximize profits. Which of the following best describes the price and output strategy that will maximize profits?

Question $9$ options:

MRA $=$ MRB $=$ MC$.$

MRA $=$ MRB$.$

MRA $-$ MRB$)=(1-$ MC$).$

PA $=$ PB $=$ MC$.$

Question $10(1$ point$)$

For a perfect first$-$degree price discriminator, incremental revenue is

Question $10$ options:

less than the marginal revenue for a non$-$discriminating monopolist.

greater than price if the demand curve is downward sloping.

equal to the price paid for each unit of output

the same as the marginal revenue curve if the firm is a non$-$discriminating monopolist.