Three Necessary Conditions Must Be Met Before a Seller Can

question 5

Multiple Choice

Three necessary conditions must be met before a seller can practice third-degree price discrimination.The conditions are: buyers must be separated into groups or submarkets according to their elasticities of demand,the seller must possess some degree of monopoly power,and

• A) the seller must prevent transfer of sales between the groups or submarkets.
• B) the seller must have "market dominance".
• C) the buyer must have profit maximization as a goal.
• D) the buyer must have variable costs that have to be recovered.

---

Definitions:

Representative Democracy

A form of government where citizens elect officials to represent them in legislative and policy-making responsibilities.

Popular Sovereignty

The concept that the legitimacy and rule of a government is grounded in and maintained by the agreement of the population, through representatives they elect.

Federalists

Members or supporters of the first American political party, which favored a strong central government and the ratification of the U.S. Constitution.

Separation of Powers

The division of government responsibilities into distinct branches to limit any one branch from exercising the core functions of another, typically identified as the executive, legislative, and judicial branches.