For a Firm to Price Discriminate, It Must

question 229

Multiple Choice

For a firm to price discriminate, it must

• A) sell to customers with identical price elasticities of demand.
• B) produce a product or service that has a close substitute provided by other firms.
• C) be able to prevent the resale of its product.
• D) have different marginal costs for each of the different customers.

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Definitions:

"Black" Names

Refers to names that are culturally, and sometimes stereotypically, associated with African American individuals, often discussed in the context of social and economic research.

Labor Demand

The total amount of labor that employers want to hire at a given wage rate and in a given time period.

Labor Supply

The total hours that workers wish to work at a given wage rate, reflecting the workforce availability for employment in an economy.

Workers Employed

Refers to individuals who are currently holding a job in the economy, contributing to the production of goods and services.