A Firm That Engages in Price Discrimination Must Be Able

question 163

True/False

A firm that engages in price discrimination must be able to identify the preferences of every customer it serves.

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends and/or capital appreciation.

Call Option

The right, but not the obligation, to buy an underlying asset at a specified strike price within a specified time frame.

Futures Contract

A binding contract to trade a certain commodity or financial asset at a fixed price, with the transaction set to occur on a specified date in the future.

Debt Securities

Financial instruments representing money borrowed that must be repaid, with terms defining the interest rate and maturity date.