If a Firm Wants to Charge Different Customers Different Prices

question 185

Multiple Choice

If a firm wants to charge different customers different prices, it must be:

• A) a price taker.
• B) in perfect competition.
• C) a price setter.
• D) a price setter in perfect competition.

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Definitions:

Market Demand Curve

A graphical representation showing the total quantity of a good or service that consumers in a market are willing and able to purchase at various prices.

Consumer Income

The total amount of income received by consumers, affecting their purchasing power and demand for goods and services.

Fast Food

Quick service food, often pre-prepared or quickly made, served in restaurants or outlets for rapid consumption.

Substitutes

Alternative products or services that can fulfill the same need or function as another in the eyes of consumers.