In Order for Price Discrimination to Work,three Conditions Must Be

question 87

Multiple Choice

In order for price discrimination to work,three conditions must be fulfilled.Which of the following is not one of those conditions?

• A)The seller must be able to identify and separate different groups of buyers.
• B)The different groups of buyers must have different elasticities of demand.
• C)The product must be a necessity.
• D)It must be impossible to resell the product.

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Definitions:

Repair Cost

The expense incurred to fix or restore equipment, machinery, or property to its operational condition.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Monthly Production

The total output or quantity of goods produced by a company in a single month.