If a Firm Is Unable to Distinguish Which of Its

question 135

Multiple Choice

If a firm is unable to distinguish which of its buyers has inelastic demand and which has a relatively elastic demand,then the firm will be unable to price discriminate because it will

• A) not know how much of the product to offer for sale.
• B) not know enough about its customer base to prevent resale.
• C) not know which price to charge which customer.
• D) not know how many of its customers will buy the product when it is offered for sale.
• E) be unable to predict how much of its sales will be retained as profit.

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Definitions:

General Principle

A fundamental truth, foundation, or doctrine that serves as the basis for a system of belief or behavior or for a chain of reasoning.

Separate Facts

The act of distinguishing or differentiating individual pieces of true information from opinions or interpretations.

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