Which Statement Is NOT Correct About Markets

question 26

Multiple Choice

Which statement is NOT correct about markets?

• A) They enable buyers and sellers to conduct transactions with one another.
• B) They require a physical location for transactions to take place.
• C) They use prices to communicate between buyers and sellers.
• D) They can exist for single goods as well as for multiple products.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, not based on costs but on what the seller believes each customer can afford or is willing to pay.

Single-Price Monopoly

A market structure where a single seller sells a unique product in the market and does not charge different prices to different consumers for the same product.

Monopolist's Profits

The excess earnings a monopolist achieves by being the sole provider of a product or service, which allows for pricing above marginal cost.

Price Discrimination

A strategy by a provider to sell the same or almost the same goods or services at various prices in different markets.