Which of the Following Is a Necessary Condition for Price

question 208

Multiple Choice

Which of the following is a necessary condition for price discrimination to be profitable?

• A) All consumers must have identical preferences.
• B) It must be easy to distinguish consumer groups with differing responses to higher prices.
• C) The seller must face a horizontal demand curve for its product in at least one part of the market.
• D) Both b and c are correct.

---

Definitions:

Prepaid Services

Expenses paid in advance for services which will be received in the future.

Unearned Fees

Income received by a company for services yet to be provided or completed; recognized as a liability until the service is performed.

Journalize

The process of recording financial transactions in the chronological order in a company's general journal.

Depreciation

Systematic assignment of a tangible asset’s value over its functional lifespan.