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 be selling a durable good.
C) The firm must have a downward sloping demand curve.
D) The firm has to be able to prevent resale of the product or service.
Answer: B
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Small countries might produce more of a particular good than their domestic citizens can consume
A) if they are willing to take a loss on the goods produced. B) if there are increasing returns to scale and export of the surplus is possible. C) when arbitrage is possible. D) if they are producing seasonal products.
Which of the following is classified as a sunk cost?
a. Cost of the next best alternative b. Additional cost of producing an additional unit c. Research costs to determine the implementation of a technology d. Total cost of producing a product