Which of the following is NOT necessary for price discrimination to occur?
A. The firm must be able to separate the market into identifiable groups.
B. The firm must have a downward sloping demand curve.
C. The firm has to be able to prevent resale of the product or service.
D. The firm must be selling a durable good.
Answer: D
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Comment on the following: "The problem with models like the Edgeworth Box and the Robinson Crusoe economy is that it is silly to assume competitive behavior when there are so few individuals in the market."
What will be an ideal response?
If the world terms of trade equal those of country H, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.
Human capital is defined as the:
A. amount of capital that is operated by workers in a firm. B. amount of capital that is operated by workers in an industry. C. amount of workers a firm employs. D. set of skills, knowledge, experience, and talent that determine the productivity of workers.
A farm is able to produce 9,000 pints of strawberries per season on 10 acres. It adds one more acre and is able to produce 12,000 pints per season. The marginal product of land for this farm is:
a. 900 pints per acre per year. b. 1,000 pints per acre per year. c. 3,000 pints per acre per year. d. 12,000 pints per acre per year.