If a Firm Faces a Flat Demand Curve

question 117

Multiple Choice

If a firm faces a flat demand curve,

• A) it cannot engage in price discrimination.
• B) it can only engage in two-part tariffs.
• C) it can only engage in perfect price discrimination.
• D) None of the above.

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Definitions:

Expected Rate of Return

The anticipated average rate of return on an investment over a specified period.

Variance

The statistical measure of the dispersion of a set of data points, often used to quantify risk or volatility in financial contexts.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.