For Direct Price Discrimination to Work Effectively

question 38

Multiple Choice

For direct price discrimination to work effectively

• A)The low-valued group should not be able to arbitrage
• B)Charge the same price to the different groups
• C)Both groups should have the same elasticity of demand
• D)None of the above

---

Definitions:

Dividend Yield

Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the return on investment from dividends alone.

Cash Dividends Per Share

The amount of cash distributed to shareholders per share out of a company's earnings.

Market Price

The market value at which you can currently buy or sell an asset or service.

Book Value Per Share

Book Value Per Share is a financial measure that calculates the equity available to shareholders divided by the number of outstanding shares, indicating the value per share if the company were liquidated.