Which of the Following Is Not a Necessary Condition for Effective

question 45

Multiple Choice

Which of the following is not a necessary condition for effective price discrimination?

• A) The firm must face a downward-sloping demand curve.
• B) There must be at least two distinguishable groups of consumers.
• C) The producer must be a pure monopolist.
• D) The seller must be able to prohibit buyers from easily reselling the product to other potential buyers.

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Definitions:

Appliance Producers

companies engaged in the manufacture of electrical or mechanical devices designed for household use.

Crony Capitalism

A type of economic system where business success is heavily influenced by close relationships between business owners and government officials.

Government Regulation

Government regulation encompasses the laws and rules set forth by the government intended to control or manage certain practices, activities, or behaviors within an economy or society.

Entry Barriers

These are obstacles that prevent or hinder new competitors from easily entering an industry or area of business.