Price Discrimination Exists When

question 293

Multiple Choice

Price discrimination exists when

• A) a firm charges different buyers different prices for its product but the costs are the same.
• B) each buyer is treated equally.
• C) sales are made below cost.
• D) a firm charges each buyer a price of the product in proportion to its costs.

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Definitions:

Major Shareholder

An individual or entity that owns a significant percentage of a company's shares, exerting influence or control over its management.

Vicariously Liable

Legal principle where one party is held responsible for the actions or omissions of another party.

Joint

Pertaining to rights, obligations, or ownership shared between two or more parties.

Unlimited Liability

A legal structure where the owners of a business are personally responsible for all of the debts and obligations of the business, without any limit.