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Which of the Following Conditions Is Not Necessary for a Firm

question 4

Multiple Choice

Which of the following conditions is not necessary for a firm to be able to engage in price discrimination? I. The firm must be able to produce to the point at which price equals marginal revenue.
II) The firm must easily be able to identify consumers with different demand elasticities.
III) The firm must be able to prevent resale of the item it produces and sells.


Definitions:

Companies

Legal entities formed by individuals, stockholders, or shareholders, with the purpose of engaging in commercial or industrial activities.

Jewelers

Jewelers are professionals or businesses involved in the design, production, and sale of jewelry.

Average cost method

An inventory costing method where all costs of inventory are averaged out to determine the cost of goods sold and the ending inventory value.

Cost of merchandise sold

The entire expense directly tied to the production and sale of products in inventory that were sold during a specific period.

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