Price discrimination is the practice -charging higher prices

1- Price discrimination is the practice of:

2- Arbitrage in markets is the practice of:

3- If a firm practices perfect (or first-degree) price discrimination, then:
i. the firm must have some market power (i.e., the market can not be perfectly competitive)
ii. the firm must be able to segment the market by consumer maximum willingness to pay (versus by age, gender, etc.)
iii. the good that the firm produces and sells can not be resold in a secondary market

4- If a firm practices perfect (or first-degree) price discrimination, then its marginal revenue curve is:
i. below its demand curve
ii. above its demand curve
iii. the same as its demand curve
iv. below its average revenue curve
v. above its average revenue curve
vi. the same as its average revenue curve

5- Movie theaters commonly charge different prices to different groups of customers for movie tickets but not for items sold at the concession stand. The most reasonable economic explanation for this pricing arrangement is that:

6- The ability of a firm to increase profits through discriminatory pricing can be undermined by:
i. arbitrage
ii. the market in which it operates being perfectly competitive
iii. differences in the price elasticity of demand or willingness to pay between groups of consumers
iv. the firm having a large market share

7- The costs that are incurred when a good is purchased in one market and resold in a different market are known as:

8- Although a market may be comprised of multiple, unique consumer groups with different demands, it is often not possible for a firm to distinguish one group from another, undermining its ability to charge different prices to different consumers. In such a setting, a firm may be able to increase its profits over those that can be attained from uniform pricing by practicing:

9- If a firm practices perfect (or first degree) price discrimination then there will be:
i. no deadweight loss
ii. no consumer surplus
iii. no producer surplus
iv. a single price that all customers pay

10- Suppose a monopolist is able to segment its market into 2 consumer groups based upon known differences in willingness to pay. Group A's demand function is given by P = 90 - 2Q and group B's demand function is given by P = 70 - 0.5Q. In addition, the marginal cost of producing and selling a unit to group A is the same as the marginal cost of producing and selling a unit to group B. Specifically, MC = 10. If the firm practices second degree (or multi-market) price discrimination, then total profit will be maximized by:
i. selling Q = 20 units at a price of P = $50 to members of group A
ii. selling Q = 40 units at a price of P = $10 to members of group A
iii. selling Q = 60 units at a price of P = $40 to members of group B
iv. selling Q = 80 units at a price of P = $30 to members of group B

11- If a monopolist engages in perfect (or first-degree) price discrimination, then compared to uniform pricing:

12- Consider a monopolist whose total cost function is TC = 20 + 10Q + 0.3Q²and whose marginal cost function is MC = 10 + 0.6Q. The demand function for the firm's good is P = 120 - 0.2Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm is able to practice perfect (or first degree) price discrimination then the firm will: