In order to price discriminate, a firm must
A. have different marginal costs for serving different customers.
B. sell to customers with identical price elasticities of demand.
C. produce a product that is a close substitute for products of other firms.
D. be able to prevent resale of its product.
Answer: D
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When compared with China, the growth of clothing exports originating in Bangladesh clearly illustrates the Ricardian model of comparative advantage. Discuss and explain
What will be an ideal response?
Contractual inflexibility is most likely to slow price adjustment in the
A) money market. B) capital market. C) real estate market. D) labor market.
In the IS-LM Model, assuming downward sloping IS curve and upward sloping LM curve; increase in consumers' wealth is going to
A) cause a movement along the IS curve. B) cause a rightward shift of the IS curve. C) cause a leftward shift of the LM curve. D) cause a rightward shift of the LM curve.
Soft budget constraints will lead to
a. inefficiency b. quick responses to changes in supply and demand c. good investment decisions d. high product quality e. managers eager to satisfy consumer demand rather than production quotas