If a Firm Practices First-Degree Price Discrimination, the Firm Must

question 102

Multiple Choice

If a firm practices first-degree price discrimination, the firm must:

• A) have customers with identical demand curves.
• B) have complete information about each customer's unique demand curve before the customer buys the product.
• C) be able to identify each customer's demand curve after the customer buys the product.
• D) lack market power but know how its customers differ by their willingness to pay for the product.

---

Definitions:

Risk

The exposure to danger, harm, or loss, whether physical, financial, or emotional, arising from uncertain or unforeseeable events.

Buyer

An individual or entity that makes a purchase or agrees to purchase goods or services.

"On Approval"

A transaction condition allowing a buyer to take merchandise home for a trial period before making a final purchase decision.

Risk Of Loss

A legal term referring to the responsibility for damage or loss of goods, typically determining who bears the risk at various points during a transaction.