Which of the Following Requirements Is Necessary to Practice Price

question 103

Multiple Choice

Which of the following requirements is necessary to practice price discrimination?
I. The firm must have market power.
II. The firm must be able to prevent arbitrage of its product.
III. The firm must face a perfectly elastic demand curve.
IV. The firm must operate in a perfectly competitive industry.

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

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Definitions:

Ultrasound

A diagnostic imaging technique that uses high-frequency sound waves to create images of structures within the body, commonly used for viewing fetuses during pregnancy.

Chromosomes

Threadlike structures made of DNA molecules that contain the genes.

Sex

Refers to the biological differences between males and females, including chromosomes, bodily organs, and reproductive structures.

Biologically Influenced Physical Attributes

Traits and characteristics of the physical body that are shaped by genetic, hormonal, and evolutionary factors.