Which of the Following Statements Regarding Price Discrimination Is False

question 70

Multiple Choice

Which of the following statements regarding price discrimination is false?

• A)In order to capture more surplus, the firm must have some market power.
• B)The firm must have some information about the different amounts people will pay for the product.
• C)The firm must be able to prevent resale.
• D)The firm must be able accurately forecast total sales.

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Definitions:

Financial Assets

Instruments that signify a financial claim or equity interest in an entity, including stocks, bonds, bank deposits, and mutual funds.

Nominal Interest Rate

The rate of interest before adjustments for inflation, indicating the face value of interest payments.

Real GDP

A country's economic production measure that accounts for fluctuations in prices due to inflation or deflation, indicating the true volume of goods and services created.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or selection among multiple options.