Which of the Following Is Not Necessary for a Firm

question 64

Multiple Choice

Which of the following is not necessary for a firm to be able to engage in price discrimination?

• A)A firm must have some market power.
• B)A firm must have some information about its consumers' willingness to pay.
• C)A firm must be a price-taker.
• D)A firm must be able to prevent arbitrage.

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Definitions:

Economic Wants

Desires for goods and services that can be satisfied through market transactions or consumption, including basic needs and luxuries.

Unlimited Resources

A hypothetical situation where resources available for use are infinite, eliminating constraints on usage or production.

Recurring Theme

A motif or subject that appears repeatedly throughout a work of literature, music, or art, emphasizing a particular idea or message.

Positive Statement

An objective statement based on facts and evidence that can be tested and verified, focusing on describing "what is".