Which of the Following Is Not a Necessary Condition for Effective

question 45

Multiple Choice

Which of the following is not a necessary condition for effective price discrimination?

• A) The firm must face a downward-sloping demand curve.
• B) There must be at least two distinguishable groups of consumers.
• C) The producer must be a pure monopolist.
• D) The seller must be able to prohibit buyers from easily reselling the product to other potential buyers.

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Definitions:

Cooperatives

Organizations or businesses owned and operated by their members, who share the benefits or profits.

Produced Goods

Items that have been manufactured or processed from raw materials, ready for sale and distribution in the marketplace.

Closed Shop

A form of union security agreement where the employer agrees to hire union members only, and employees must remain members of the union at all times in order to remain employed.

American Federation of Labor

A national federation of labor unions in the United States, founded in 1886, focusing on fair labor standards and worker rights.