ECON 300 Exam 4 Study Questions
and Answers 2026
what is price discrimination
Charging different prices to different customers for the same product.
What is first degree price discrimination?
Each person is charged the highest amount they are willing to pay; reservation price
what is variable profit
Sum of profits on each incremental unit produced by a firm; i.e., profit ignoring fixed
costs.
What is perfect price discrimination?
This occurs when a seller charges each separate consumer an amount that is exactly
equal to his or her maximum willingness to pay.
What is second degree price discrimination?
charging different price per unit for different quantities of the same good
, What is block pricing?
practice of charging different prices for different quantities or "blocks" of a good
why is second-degree price discrimination good
can make the consumer better off by expanding output and lowering cost
What is third degree price discrimination?
Dividing consumers into groups with separate demand curves and charging different
prices to each group.
T/F: in thrid-degree price discrimination, is it always beneficial to sell to both groups
fales
What is intertemporal price discrimination?
Practice of separating consumers with different demand functions into different groups
by charging different prices at different points in time.
and Answers 2026
what is price discrimination
Charging different prices to different customers for the same product.
What is first degree price discrimination?
Each person is charged the highest amount they are willing to pay; reservation price
what is variable profit
Sum of profits on each incremental unit produced by a firm; i.e., profit ignoring fixed
costs.
What is perfect price discrimination?
This occurs when a seller charges each separate consumer an amount that is exactly
equal to his or her maximum willingness to pay.
What is second degree price discrimination?
charging different price per unit for different quantities of the same good
, What is block pricing?
practice of charging different prices for different quantities or "blocks" of a good
why is second-degree price discrimination good
can make the consumer better off by expanding output and lowering cost
What is third degree price discrimination?
Dividing consumers into groups with separate demand curves and charging different
prices to each group.
T/F: in thrid-degree price discrimination, is it always beneficial to sell to both groups
fales
What is intertemporal price discrimination?
Practice of separating consumers with different demand functions into different groups
by charging different prices at different points in time.
