ECON 300 EXAM 3 || MOST RECENT EXAM 2026-2027
ACTUAL COMPLETE 122 REAL EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED SUCCESS!!
NEWEST EXAM | JUST RELEASED!!
If a firm practices third-degree price discrimination, the price
charged should be
higher in the market where demand is: -
ANSWERS-A. higher
B.
lower
C. more price
elastic
*** D. less price
elastic ***
Which of the following results in the highest amount of
total surplus? -
ANSWERS-A. third-degree price
discrimination
B. block
pricing
,*** C. first-degree price
discrimination ***
D.
bundling
An airline sells seats on its flights to business travelers whose
demand is QB = 300 - P and to vacation travelers whose deman
is QV = 150 - 0.5P. Combined market demand is Q = 450 - 1.5P.
The marginal cost and average total cost of providing a seat on
a flight are $200. How much higher will profit be if the airline
uses third-degree price discrimination instead of charging all
travelers the same price? - ANSWERS-*** A. $0 ***
B. $250
C. $400
D. $1,000
Which of the following conditions do not have to be met in
order for indirect price discrimination by versioning to work? -
ANSWERS-A. The firm's customers must have different
demand curves.
*** B. The marginal costs of producing each version of the
product must be the same. ***
C. The firm must be able to prevent resale.
D. The firm must have market power.
in order for price discrimination via a quantity discount to
work: - ANSWERS-*** A. customers who purchase larger
quantities must have relatively elastic demand. ***
, B. customers who purchase larger quantities must have
relatively inelastic demand.
C. customers who pay a relatively high price must have a
relatively elastic demand.
D. customers who pay a relatively low price must have a
relatively inelastic demand.
A firm wants to offer a quantity discount in order to price-
discriminate between buyers who are relatively uninterested in
the product and buyers who are obsessively interested in it.
The uninterested customers have demand of QU = 30 - 0.5P.
The package offered to them contains 10 units of the good at a
price of $40 each. Which of the following packages designed
for the obsessed customers are incentive compatible? -
ANSWERS-A. 60 units at a price of $10 each
B. 40 units at a price of $10 each
*** C. 60 units at a price of $20 each ***
D. 40 units at a price of $20 each
A firm faces a market demand curve P = 50 - 5Q. It has a
constant marginal cost of $10. Relative to standard monopoly
pricing, how would a block pricing strategy where the first four
units can be purchased for a price of $30 each but two more
units can be purchased for an additional $20 each change
consumer surplus and producer surplus? - ANSWERS-A.
Consumer surplus would decrease by $10, and producer
surplus would increase by $20.
*** B. Consumer surplus would increase by $10, and producer
surplus would increase by $20. ***
ACTUAL COMPLETE 122 REAL EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED SUCCESS!!
NEWEST EXAM | JUST RELEASED!!
If a firm practices third-degree price discrimination, the price
charged should be
higher in the market where demand is: -
ANSWERS-A. higher
B.
lower
C. more price
elastic
*** D. less price
elastic ***
Which of the following results in the highest amount of
total surplus? -
ANSWERS-A. third-degree price
discrimination
B. block
pricing
,*** C. first-degree price
discrimination ***
D.
bundling
An airline sells seats on its flights to business travelers whose
demand is QB = 300 - P and to vacation travelers whose deman
is QV = 150 - 0.5P. Combined market demand is Q = 450 - 1.5P.
The marginal cost and average total cost of providing a seat on
a flight are $200. How much higher will profit be if the airline
uses third-degree price discrimination instead of charging all
travelers the same price? - ANSWERS-*** A. $0 ***
B. $250
C. $400
D. $1,000
Which of the following conditions do not have to be met in
order for indirect price discrimination by versioning to work? -
ANSWERS-A. The firm's customers must have different
demand curves.
*** B. The marginal costs of producing each version of the
product must be the same. ***
C. The firm must be able to prevent resale.
D. The firm must have market power.
in order for price discrimination via a quantity discount to
work: - ANSWERS-*** A. customers who purchase larger
quantities must have relatively elastic demand. ***
, B. customers who purchase larger quantities must have
relatively inelastic demand.
C. customers who pay a relatively high price must have a
relatively elastic demand.
D. customers who pay a relatively low price must have a
relatively inelastic demand.
A firm wants to offer a quantity discount in order to price-
discriminate between buyers who are relatively uninterested in
the product and buyers who are obsessively interested in it.
The uninterested customers have demand of QU = 30 - 0.5P.
The package offered to them contains 10 units of the good at a
price of $40 each. Which of the following packages designed
for the obsessed customers are incentive compatible? -
ANSWERS-A. 60 units at a price of $10 each
B. 40 units at a price of $10 each
*** C. 60 units at a price of $20 each ***
D. 40 units at a price of $20 each
A firm faces a market demand curve P = 50 - 5Q. It has a
constant marginal cost of $10. Relative to standard monopoly
pricing, how would a block pricing strategy where the first four
units can be purchased for a price of $30 each but two more
units can be purchased for an additional $20 each change
consumer surplus and producer surplus? - ANSWERS-A.
Consumer surplus would decrease by $10, and producer
surplus would increase by $20.
*** B. Consumer surplus would increase by $10, and producer
surplus would increase by $20. ***
