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:

Fromm's Theory

A psychoanalytic theory developed by Erich Fromm that focuses on the human need for freedom and the ways societal structures can impede or foster personal development.

Kelly's Theory

A psychological framework proposing that people develop personal constructions of reality to understand their experiences and guide their behavior.

Homosexual

A sexual orientation characterized by attraction to people of the same sex.

"Real Man"

A societal concept that often refers to stereotypical male behaviors and traits emphasizing strength, stoicism, and dominance.