Which of the Following Is a Necessary Condition for Perfect

question 71

Multiple Choice

Which of the following is a necessary condition for perfect price discrimination?

• A) The firm must have very good information about its customers.
• B) The firm can only have one market.
• C) The demand curve for the product must be inelastic.
• D) The firm must have no competition.

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Definitions:

Perfect Tender Rule

A common law rule under which a seller was required to deliver to the buyer goods that conformed perfectly to the requirements stipulated in the sales contract. A tender of nonconforming goods would automatically constitute a breach of contract. Under the Uniform Commercial Code, the rule has been greatly modified.

Conform

To act in accordance or harmony with established standards, rules, or laws.

Contract

A contract is a legally enforceable agreement between two or more parties with mutual obligations.

Commercial Impracticability

A doctrine under which a seller may be excused from performing a contract when (1) a contingency occurs, (2) the contingency’s occurrence makes performance impracticable, and (3) the nonoccurrence of the contingency was a basic assumption on which the contract was made.