Which of the Following Conditions Will Allow a fiRm to Undertake

question 59

Multiple Choice

Which of the following conditions will allow a firm to undertake price discrimination successfully?

• A) The good or service that is being sold must be a new or innovative product.
• B) The firm must face a perfectly elastic demand curve.
• C) The firm must be able to identify consumers willing to pay different prices.
• D) Customers must be able to resell the good or service.

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Definitions:

Correlation

A measure of the relationship between two or more variables, indicating how one may predict or relate to the other.

Text Message

A short electronic message sent over a cellular network from one cell phone to another.

Positive Correlation

A relationship between two variables where both variables move in the same direction, meaning as one variable increases, the other variable also increases.

Gym

A facility equipped with specialized machines, weights, and areas for physical exercise and training.