Which of the Following Conditions Must Be True So That

question 120

Multiple Choice

Which of the following conditions must be true so that a firm can profitably price discriminate?

• A) The firm must have market power.
• B) The firm must be able to identify how its consumers' demand curves differ.
• C) The must be able to limit or prevent resale.
• D) All of the above.

---

Definitions:

Stock Options

Contracts that grant the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time frame.

Available-for-Sale

Available-for-sale refers to financial assets that are not classified as held-for-trading or held-to-maturity, and are recorded at fair value with changes recognized in other comprehensive income.

Market Values

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Unrealized Increase/Decrease

Refers to the change in value of an investment that has not been sold, affecting the company’s balance sheet but not its income statement.