Which Conditions Must Hold If a Firm Is to Engage

question 18

Multiple Choice

Which conditions must hold if a firm is to engage in price discrimination?

• A) It must be extremely difficult, if not impossible, for one consumer to resell a product to another.
• B) Firms must have a sufficiently low amount of market power.
• C) Consumers must have very similar preferences for the product.
• D) all of the above

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Definitions:

Population Boom

Population Boom refers to a rapid increase in the population of a particular area, often as a result of advancements in healthcare and living conditions, leading to challenges in resources and infrastructure.

Infant Mortality

Average number of infant deaths per 1,000 live births in a particular population.

Capitalism

An economic system based on the laws of free market competition, privatization of the means of production, and production for profit.

Privatization

The process of transferring an enterprise or industry from the public sector to the private sector.