Which of the Following Statements Regarding Price Discrimination Is True

question 71

Multiple Choice

Which of the following statements regarding price discrimination is true?

• A)In order to capture more surplus, the firm must have some market power.
• B)Third-degree price discrimination is illegal.
• C)Second-degree price discrimination refers to pricing differently for different market segments.
• D)First-degree price discrimination is relatively easy to implement.

---

Definitions:

Aircraft Products Division

A specialized business segment within a company focused on the development, manufacturing, and selling of aircraft-related products.

Home Security Division

A specialized segment within a company that focuses on products and services related to securing homes from intruders, fire, and other dangers.

Transfer Price

The cost at which products or services are exchanged between divisions within the same organization or among affiliated companies.

Transmission Division

A segment within a company or industry that specializes in the development, production, and maintenance of transmission systems.