In Order to Price Discriminate, a Firm Must

question 385

Multiple Choice

In order to price discriminate, a firm must

• A) produce a product that is a close substitute for products of other firms.
• B) have different marginal costs for serving different customers.
• C) sell to customers with identical price elasticities of demand.
• D) be able to prevent resale of its product.

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, rather than by intrinsic satisfaction in the activity itself.

Intrinsic Motivation

The drive to engage in activities for their own sake, deriving pleasure and satisfaction from the activity itself rather than external rewards.

Biological Motives

Innate drives stemming from biological needs that are essential for survival, such as hunger, thirst, and the need for sleep.

Avoiding Bad Grades

Strategies or actions taken to prevent receiving poor marks in academic assessments, usually involving studying, time management, and seeking help when needed.