In Order to Practice Price Discrimination a Firm Must Be

question 116

Multiple Choice

In order to practice price discrimination a firm must be in a market such that the consumers in its market

• A) all have identical tastes.
• B) all have identical price elasticities of demand.
• C) have different price elasticities of demand.
• D) have the same demand for its product.

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Definitions:

Type II Error

The error that occurs when the null hypothesis is falsely accepted, failing to detect an effect or difference when one actually exists.

Null Hypothesis

The hypothesis in statistical analysis that posits no significant difference or relationship exists among groups or variables being studied.

P-Value

The chance of receiving test results that are as extreme or exceed the extremity of those actually observed, with the null hypothesis assumed to be true.

Significance Level

The likelihood of mistakenly dismissing the null hypothesis, typically represented by alpha, when in truth it holds.