Why is it important that a firm can prevent resale of its product if it wishes to engage in price discrimination?
What will be an ideal response?
If the firm cannot prevent resale then consumers who are able to purchase the product at the lower price can do so and resell the product to the consumers to whom the firm will charge the higher price. This will prevent the firm from earning higher profits from price discrimination than from a single pricing strategy, since the single price will be higher than the lowest price charged with a price discrimination strategy.
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The table above gives data for the nation of Syldavia. The official settlements account has a
A) $40 billion surplus. B) balance of $380 billion. C) $30 billion deficit. D) zero balance. E) $40 billion deficit.
Summarize the type of agreement that NAFTA is, its history, the process by which it has been implemented in the last 15 years
What will be an ideal response?
The opportunity cost of holding excess reserves is equal to
A. the federal funds rate. B. the federal funds rate minus the discount rate. C. the discount rate. D. none of the above.
With globalization, the world is moving from hundreds of national economies toward one large world economy
Indicate whether the statement is true or false