A Perfectly Competitive Firm Cannot Practice Price Discrimination Because

question 248

Multiple Choice

A perfectly competitive firm cannot practice price discrimination because

• A)a firm that breaks even in the long run cannot afford to engage in yield management.
• B)it does not advertise; this prevents the firm from marketing its product to different segments of the market.
• C)each consumer in a perfectly competitive market has the same willingness to pay.
• D)the firm can only charge the market price.

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Definitions:

Right Frontal Lobe

The right-sided section of the frontal lobe of the brain, involved in controlling aspects of behavior, personality, and voluntary movement.

Cerebral Cortex

Part of the brain that regulates complex activities, such as speech and analytical thinking.

Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and sensory processing.

Hippocampus

A major component of the brain involved in memory formation, spatial navigation, and emotional regulation.