In Order to Practice Third Degree Price Discrimination All of the Following

question 25

Multiple Choice

In order to practice third degree price discrimination all of the following conditions must hold except that the firm

• A) has monopoly power.
• B) is able to exercise control over resales.
• C) is willing to sell more to each customer at lower prices.
• D) charges a lower price to groups with more elastic demand.

---

Definitions:

Tolerance

The permissible limit or variation in dimensions, typically expressed in plus or minus values, indicating how much deviation from a standard is acceptable.

Circular Runout

A term in mechanical engineering that describes the tolerance of how much one circular element of a part can deviate from a perfect circle as it rotates.

Cross Section

A diagram or representation showing the internal structure of something when cut along an imaginary line.

Circular Runout

A tolerance that limits the total variation a surface can have when rotated around a central axis, ensuring roundness and smooth operation of rotating parts.