Which of the Following Is Not Necessary for Price Discrimination

question 2

Multiple Choice

Which of the following is not necessary for price discrimination to occur?

• A)a downward-sloping demand curve facing the firm
• B)control over price by the firm
• C)the firm can easily distinguish groups with different price elasticities
• D)the firm can easily prevent resale of the good by lower-price customers
• E)economies of scale exist

---

Definitions:

Return On Investment

A financial metric calculating the profitability or efficiency of an investment, expressed as a percentage of the investment's cost.

Operating Assets

Operating assets are assets required for a company to conduct its daily business operations, excluding any financial investments.

Return On Investment

A metric utilized to assess the effectiveness or return on investment (ROI) or to compare the performance of various investments.

Interest Expense

The cost incurred by an entity for borrowing funds, typically calculated as a percentage of the principal loan amount.