A Perfectly Competitive Firm Cannot Practice Price Discrimination Because

question 248

Multiple Choice

A perfectly competitive firm cannot practice price discrimination because

• A)a firm that breaks even in the long run cannot afford to engage in yield management.
• B)it does not advertise; this prevents the firm from marketing its product to different segments of the market.
• C)each consumer in a perfectly competitive market has the same willingness to pay.
• D)the firm can only charge the market price.

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Definitions:

Self-selection

A situation where individuals select themselves into a group, causing potential bias in statistical analysis due to non-random sample characteristics.

Migration

The movement of people from one place to another with the intentions of settling, temporarily or permanently, in a new location. This can be driven by factors such as economic, social, political, or environmental reasons.

Highly Skilled Immigrants

Highly skilled immigrants are individuals who migrate to another country and possess specialized knowledge or skills, often contributing to the host country's workforce in sectors such as technology, healthcare, and education.

Low-skilled Immigrants

Individuals who migrate from one country to another and possess limited vocational skills or education.