ECO 550 FINAL EXAM PART 2 (ASSURED A)

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ECO 550 FINAL EXAM PART 2 (ASSURED A) Question 1 4 out of 4 points Third-degree price discrimination exists whenever: Answer Selected Answer: the seller can separate markets by geography, i... ncome, age, etc., and charge different prices to these different groups. Correct Answer: the seller can separate markets by geography, income, age, etc., and charge different prices to these different groups. • Question 2 4 out of 4 points Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting Answer Selected Answer: two-part price discrimination. Correct Answer: two-part price discrimination. • Question 3 4 out of 4 points ____ is the price at which an intermediate good or service is transferred from the selling to the buying division within the same firm. Answer Selected Answer: Transfer price Correct Answer: Transfer price • Question 4 0 out of 4 points The following are possible examples of price discrimination, EXCEPT: Answer Selected Answer: subscription prices for a professional journal are higher when bought by a library than when bought by an individual. Correct Answer: a product sells at a higher price at location A than at location B, because transportation costs are higher from the factory to A. [Show More]

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