Which of the Following Is Necessary in Order for a Firm

question 43

Multiple Choice

Which of the following is necessary in order for a firm to successfully practice price discrimination?

• A)The firm must practice product differentiation.
• B)The demand for the firm's product is inelastic.
• C)The firm must be able to segment the market for the product.
• D)The firm's transactions costs must be zero.

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Definitions:

Control

Refers to the power to influence or direct people's behavior or the course of events.

Interest Income

Income earned from the lending of money or from depositing funds in interest-bearing accounts.

Banks

Financial institutions licensed to receive deposits and provide financial services, including loans, to individuals and businesses.

Economic Benefit

The gain received when money, goods, or services are obtained or when a financial burden is lifted.