Which of the Following Is a Necessary Condition for Successful

question 244

Multiple Choice

Which of the following is a necessary condition for successful price discrimination?

• A)The seller must possess market power.
• B)The buyer must possess market power.
• C)Transactions costs must be zero.
• D)Buyers must have identical inelastic demands.

---

Definitions:

α

Denotes the level of significance in hypothesis testing, representing the probability of rejecting the null hypothesis when it is actually true.

Z Statistic

A type of standard score that indicates the number of standard deviations a datum is from the mean of a distribution, used in significance testing.

One-tailed Test

A statistical hypothesis test in which the region of rejection is on only one side of the sampling distribution.

α

Symbol often used to represent the level of significance in hypothesis testing, typically denoting the probability of making a Type I error.