Which of the Following Statements About Price Discrimination Is Correct

question 155

Multiple Choice

Which of the following statements about price discrimination is correct?

• A) A price discriminating firm will want to charge a higher price to the consumer group with the more inelastic demand.
• B) A firm will always be able to increase its profit by price discriminating rather than charging the same price to all customers.
• C) Price discrimination will be most effective when buyers can easily resell the product amongst themselves.
• D) Each consumer will pay a higher price when a firm is a price discriminator than would be the case if all customers were charged the same price.

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Definitions:

Cultural Intelligence

The ability to understand, respect, and work effectively with people from different cultural backgrounds.

Cultural Differences

Refer to the diverse beliefs, values, behaviors, and practices that distinguish groups of people from one another, often observed between different societies or ethnic groups.

Flexible

The quality of being adaptable, open to change, and capable of operating effectively under various conditions or constraints.

Culture Shock

A sense of confusion, uncertainty, or anxiety that people may experience when exposed to an unfamiliar cultural or social environment.