A Firm Can Effectively Practice Price Discrimination and Increase Profit

question 43

Multiple Choice

A firm can effectively practice price discrimination and increase profit if

• A) the marginal cost of production in each market is different.
• B) the average cost of production in each market is different.
• C) the price elasticity of demand in each market is different.
• D) the product can be produced in two different factories.

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Definitions:

Reliability

The degree to which an assessment, measurement, or process consistently produces the same results under the same conditions.

Job Evaluation System

A method used by organizations to determine the value of a job in relation to other jobs within the organization, often influencing pay and grade.

Factor Definition

The process of identifying and defining the elements or criteria that are important for evaluating or measuring something.

Compensable Factor

A criteria used in job evaluation to determine the value of a job and its appropriate compensation.