Which of the following is a necessary condition for price discrimination to be profitable?
a. All consumers must have an identical demand for the product.
b. Groups of consumers with different demand elasticities must be easily distinguishable.
c. The market demand for the product must be highly elastic.
d. It must be possible for buyers to resell the product at a low cost.
B
You might also like to view...
What are the main lessons economists learned from the developing country crisis?
What will be an ideal response?
Which of the following would increase aggregate expenditure?
a. increased government spending with no change in taxes b. decreased taxes with no change in government spending c. increased government spending with a proportionate increase in taxes d. All of these.
When the annual interest rate is 7 percent, what is the present value of receiving a payment of $10,000 three years from now?
a. $10,700.00. b. $10,244.89. c. $9,300.00 d. $8,162.98.
The comparable access argument for import restrictions is a more valid economic argument for products using small-scale technology than for products requiring substantial economies of scale to be competitive.
a. true b. false