A Firm Practicing Third-Degree Price Discrimination May

question 146

Multiple Choice

A firm practicing third-degree price discrimination may:
I. segment its customers by age, such as offering senior citizen discounts.
II. charge customers living in certain zip codes a higher price than customers living in other locations.
III. initially charge high prices and then reduce the price over time to sell to the more price-sensitive consumers.

• A) II
• B) I and II
• C) I
• D) I, II, and III

---

Definitions:

Joint Venture

is a business arrangement where two or more parties collaborate on a specific project or business activity, sharing resources, risks, and rewards.

Patented Semiconductor Technology

A unique and legally protected technology related to semiconductor devices, which has been officially registered with a patent office.

Royalty Payments

Financial payments made for the use of someone else's property, typically intellectual property like patents, copyrighted material, or trademarks.

Joint Venture/Strategic Alliances

Business arrangements where two or more parties collaborate on a project or business activity, sharing risks and benefits.