Which of the following conditions must be TRUE so that a firm can profitably price discriminate?
A) The firm must be able to identify individual or groups of consumers with different demand curves.
B) The firm must be able to identify how its consumers' demand curves differ.
C) The good cannot be easily resold.
D) All of the above.
D
You might also like to view...
Assuming that dry cleaning is a normal good, an increase in consumer income, other things being equal, will:
a. increase the demand for dry cleaning. b. decrease the demand for dry cleaning. c. increase the quantity demanded of dry cleaning. d. decrease the quantity of dry cleaning demanded.
If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will
a. restrict output to increase the price even higher. b. raise price and expand output to increase profit. c. lower price and expand output to increase profit. d. attempt to maintain this position because it is consistent with profit maximization.
Diseconomies of scale imply that the average total cost curve is downward-sloping in the long run.
Answer the following statement true (T) or false (F)
Average Variable Cost is
A. the per unit fixed cost of production. B. the per unit variable cost of production. C. the addition to cost associated with one additional unit of output. D. the per unit cost of production.