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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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

Transcribed Image Text: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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