Which of the Following Is NOT a Principle of Pricediscrimination

question 41

Multiple Choice

Which of the following is NOT a principle of pricediscrimination?

• A)It is more profitable to set different prices in markets with different demand curves than a single price that covers all
• Markets.
• B)To maximize profit the firm should set a higher price in markets with more elastic demand.
• C)To maximize profit the firm should set a higher price in markets with more inelastic demand.
• D)Arbitrage makes it difficult for a firm to set different prices in different markets thereby reducing the profit from price
• Discrimination.

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Definitions:

Term Partnership

A partnership that is set up to run for a set time period or in order to accomplish a task of some sort.

Unlimited Liability

The legal obligation of business owners to pay all of their business debts personally, without limit, which exposes personal assets to risk.

Sole Proprietorship

A business formed by the sole proprietor. It is the easiest business organization to form.

Term Partnership Dissociation

The ending of a partner's association with a partnership for a predetermined term, as outlined by an agreement or law.