Which of the following is a necessary condition for successful price discrimination?
A) The seller must possess market power. B) Transactions costs must be zero.
C) The buyer must possess market power. D) Buyers must have identical inelastic demands.
A
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Country A has a lower stock of capital than Country B, but the supply of labor in both the countries is equal
A) An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor. B) The increase in output due an additional unit of capital will be larger in Country A than in Country B. C) The increase in output due an additional unit of capital will be smaller in Country A than in Country B. D) An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
According to the classical view,
A. velocity is constant, which means changes in price will cause changes in price or quantity. B. quantity is constant, which means changes in the money supply could cause either changes in velocity or changes in prices. C. velocity and price are constant so that changes in the money supply causes changes in quantity. D. velocity and quantity are constant so that changes in the money supply cause changes in prices.