A Firm Cannot Price Discriminate If

question 125

Multiple Choice

A firm cannot price discriminate if

• A)it has declining marginal revenue.
• B)it operates in a competitive market.
• C)buyers only reveal the price they are willing to pay for the product.
• D)it has a constant marginal cost.

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Definitions:

Discounting Periods

The intervals at which cash flows are discounted back to their present value in financial analysis.

Annual Annuity

A financial product providing a series of payments made at equal intervals over a set period, typically one year.

Bank Account

An account managed by a bank where the monetary transactions between the bank and its customers are documented.

Annual Raises

Increases in salary or wage that are given to employees on a yearly basis, often based on performance or inflation adjustments.