Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A) Firms that can identify two types of consumers can price discriminate perfectly.
• B) Firms can price discriminate only if there is zero competition in the market.
• C) Firms that price discriminate will not reach higher profits.
• D) Firms that can prevent reselling may be able to engage in price discrimination.
• E) Firms can usually price discriminate if they are in a perfectly competitive market.

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Definitions:

Incorporated

A business that has been formed into a legal corporation, providing its owners with limited liability.

Limited Liability Company (LLC)

An unincorporated business that is taxed like a partnership, with the members paying personal income taxes, and has the limited liability of a corporation.

Unincorporated

Referring to entities or businesses that have not formed or been recognized as a corporation under law.

Taxed

Subjected to financial charges or levies imposed by a government on income, transactions, or property.