Which of the Following Must Exist for a Firm to Engage

question 308

Multiple Choice

Which of the following must exist for a firm to engage in price discrimination?

• A) The firm must be able to identify and separate its buyers into different classes, and the low-price buyers cannot resell the product to the high-price buyers.
• B) The firm must face an inelastic demand.
• C) The firm must be able to realize economies of scale.
• D) The firm must have no more than one class of buyer.
• E) The firm must be a natural monopoly.

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Definitions:

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