Reference: Ref 14-3 (Figure: PPD) Refer to the Figure

question 80

Multiple Choice

Reference: Ref 14-3 (Figure: PPD) Refer to the figure. Which of the following statements best explains why a firm that perfectly price discriminates would sell additional units beyond c units of output?

• A) If the firm can perfectly price discriminate it can charge a price equal to the consumers' willingness to pay, which for all units beyond c is higher than the firm's marginal cost for those units.
• B) The firm will continue to increase profits as long as consumers' willingness to pay is greater than zero.
• C) A firm will not sell beyond c units of output. The marginal cost is greater than consumers' willingness to pay for these units.
• D) A firm will not sell beyond c units of output. The marginal cost is greater than the firm's marginal revenue for these units.

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Definitions:

Procedures

Step-by-step instructions or guidelines designed to perform a specific task or to achieve a certain objective within an organization.

Specific Situations

Particular instances or contexts within which actions take place, often requiring tailored responses or strategies.

Financial Budgets

Comprehensive financial plans that outline an organization's financial and operational goals.

Anticipated Sales

The expected volume of sales based on market research, historical data, and analysis, often used for planning and forecasting purposes.