Which of the Following Is Not a Necessary Condition for Effective

question 45

Multiple Choice

Which of the following is not a necessary condition for effective price discrimination?

• A) The firm must face a downward-sloping demand curve.
• B) There must be at least two distinguishable groups of consumers.
• C) The producer must be a pure monopolist.
• D) The seller must be able to prohibit buyers from easily reselling the product to other potential buyers.

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Definitions:

Defective Merchandise

Products that fail to meet quality standards, often leading to returns, exchanges, or adjustments.

Discount Period

The timeframe during which a discount is available or when a bill can be settled at less than its face value.

Sales Allowance

A reduction in the price of goods sold, usually given after the sale to account for defects or errors in shipment.

Refund Liability

An obligation to return funds to a customer, often recognized in situations where returns or cancellations are expected.