When consumers are maximizing their utility, they have to considerchoosing the optimal combination of goods to buy.All of theseO Their indifference curvesThe prices of each goodTheir incomewhen When firms can price discriminate it is unfair to all customers because it causes a deadweight loss.True, price discrimination happens when monopolists reduce the quantity in order to hike up theprice.O True, customers should have an equal share in the total economic surplus for markets to be fair.False, price discrimination can make some markets more fair because it increases production andallows people with lower reservation prices the opportunity to buy.False, there is a deadweight loss from price discrimination, but consumer surplus increases.

According to the utility maximization model, the rational consumer seeks to maximize the utility…

Answered: When consumers are maximizing their…

When consumers are maximizing their utility, they have to consider choosing the optimal combination of goods to buy. All of these Their indifference curves The prices of each good Their income when

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When consumers are maximizing their utility, they have to consider
choosing the optimal combination of goods to buy.
All of these
O Their indifference curves
The prices of each good
Their income
when

When firms can price discriminate it is unfair to all customers because it causes a dead
weight loss.
True, price discrimination happens when monopolists reduce the quantity in order to hike up the
price.
O True, customers should have an equal share in the total economic surplus for markets to be fair.
False, price discrimination can make some markets more fair because it increases production and
allows people with lower reservation prices the opportunity to buy.
False, there is a deadweight loss from price discrimination, but consumer surplus increases.

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