For Price Discrimination to Work ________

question 35

Multiple Choice

For price discrimination to work ________.

• A) the market must be segmentable and the segments must show similar intensities of demand
• B) members in the lower-price segment must be able to resell the product to the higher-price segment
• C) competitors must be able to undersell the firm in the higher-price segment
• D) the practice must not breed customer resentment and ill will
• E) the extra revenue derived from price discrimination must not exceed the cost of segmenting and policing the market

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Definitions:

Empowerment

Giving people the authority, opportunity, and motivation to take initiative and solve organizational problems.

Authority

The legitimate power or right granted to an individual or organization to make decisions, command, or govern.

Opportunity

A situation or condition that puts someone in a position to achieve success or progress.

Rosabeth Moss Kanter

A professor of business at Harvard Business School, known for her research on strategy, innovation, and leadership.