If a Firm Practices First-Degree Price Discrimination, the Firm Must

question 102

Multiple Choice

If a firm practices first-degree price discrimination, the firm must:

• A) have customers with identical demand curves.
• B) have complete information about each customer's unique demand curve before the customer buys the product.
• C) be able to identify each customer's demand curve after the customer buys the product.
• D) lack market power but know how its customers differ by their willingness to pay for the product.

---

Definitions:

Analgesic

A type of medication designed to relieve pain without causing loss of consciousness.

Making Inferences

The process of drawing a logical conclusion based on evidence and reasoning rather than from explicit statements.

Constipation

A condition characterized by difficulty in passing stools or an infrequent passage of hard, dry stools.

Medications

Substances used in the diagnosis, treatment, or prevention of disease, usually administered to modify or control specific physiological processes.