Which of the Following Is NOT a Condition for a Firm

question 57

Multiple Choice

Which of the following is NOT a condition for a firm to engage in price discrimination?

• A) Consumers are partitioned into two or more types, with one type having a more elastic demand than the other.
• B) The firm has a means of identifying consumer types.
• C) The consumers are sincere in revealing their true natures.
• D) There is no resale market for the good.

---

Definitions:

Market for Winter Coats

The economic environment or demand for winter coats, influenced by factors like seasonality, fashion trends, and consumer income.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of spending on a product or service versus what they end up paying.

Decreases Price

A reduction in the cost or value of a good or service.

Consumer Surplus

The variance between the overall sum consumers can and will pay for a good or service and what they genuinely spend on it.