Which of the Following Is Not a Condition of Price

question 24

Multiple Choice

Which of the following is not a condition of price discrimination?

• A)The seller must be a price searcher.
• B)The seller must be able to distinguish among customers who would be willing to pay different prices.
• C)The possibility of arbitrage must not exist.
• D)The seller must have zero fixed costs.
• E)The seller must exercise some control over price.

---

Definitions:

Capital Structure

The mixture of debt and equity financing a company uses to fund its operations and growth, influencing its risk and value.

Debt-to-Assets Ratio

A metric showing the proportion of a company's total assets financed through debt, providing insight into the company's financial leverage.

Flotation Costs

The costs associated with issuing new securities, including underwriting fees, legal fees, and registration fees.

After-Tax Cash Inflows

After-tax cash inflows represent the net cash a company receives from its operations, investments, or financial activities, after all taxes have been deducted.