Microeconomics - Some people argued that this was a form a sexual discrimination A California court accepted the argument and ruled that car washes

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Allan Magnuson Economics 202 Chapter 9 Homework Monopoly 1. The perfectly competitive firm exhibits resource allocative efficiency ( P = MC ), but the single-price monopolist does not. What is the reason for this difference? A. The differences between a perfectly competitive firm and a monopolist firm are the result of the perfectly competitive firm facing a horizontal demand curve and the single-price monopolist facing a downwardsloping demand curve. 10. For many years in California, car washes would advertise Ladies’ Day. On one day during the week, a woman could have her car washed for a price lower than what a man would pay.
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Unformatted text preview: Some people argued that this was a form a sexual discrimination. A California court accepted the argument and ruled that car washes could no longer have a Ladies’ Day. Do you think this was a case of sexual discrimination or price discrimination? Explain your answer. A. Both. Clearly, using gender as a qualification for some service is sexual discrimination. However, if the intent was to appeal to a particular segment of the market, specifically those who stay home during the day and could, therefore, have their cars washed at “off-peak” hours, then it was also price discrimination....
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This note was uploaded on 05/12/2011 for the course ECON 202 taught by Professor D.pynn during the Spring '11 term at Mt. San Jacinto College.

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