What Must Occur for a Firm to Ensure Profitable Price

question 5

Multiple Choice

What must occur for a firm to ensure profitable price discrimination?

• A) The firm must sell a standardized product.
• B) The firm must be able to keep its national markets separate.
• C) The firm must encourage other firms and competitors to engage in arbitration.
• D) Products sold by the firm must have same price elasticities of demand in different countries.
• E) Products must be sold in countries where a small change in prices produces a large change in demand.

---

Definitions:

Flexible Production

A manufacturing strategy that enables a company to adjust and reconfigure its production line quickly to adapt to changes in market demand or product design.

Automation

Automation involves using technology and machinery to perform tasks with minimal human assistance, aimed at increasing efficiency, reducing errors, and saving time and resources.

Compete

To strive against others for the purpose of gaining an advantage, winning a position, or achieving superiority in a field.

Manufacturing

The process of converting raw materials into finished goods through the use of labor, machinery, and processing.