Which of the Following Conditions Must Be TRUE So That

question 17

Multiple Choice

Which of the following conditions must be TRUE so that a firm can profitably price discriminate?

• A)There are no other firms in the market.
• B)The good is a non-durable.
• C)The good cannot be easily resold.
• D)All of the above.

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Definitions:

Target Income

The specific amount of net income that a company aims to achieve for a certain period.

Investment Turnover

Investment turnover measures how efficiently a company generates sales from its investment in fixed assets.

Profit Margin

The percentage of revenue remaining after all expenses, taxes, and costs have been deducted from total sales.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit by the cost of the investment.