If a Firm Faces a Flat Demand Curve

question 117

Multiple Choice

If a firm faces a flat demand curve,

• A) it cannot engage in price discrimination.
• B) it can only engage in two-part tariffs.
• C) it can only engage in perfect price discrimination.
• D) None of the above.

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Definitions:

Customized

Tailored specifically to meet the individual needs or preferences of a customer or user.

Target Markets

Distinct segments of consumers or organizations that a business tailors its products, services, and marketing efforts towards.

Priced

Refers to the assignment of a monetary value to a product or service, typically determined by cost, competition, and demand factors.

Direct Marketing

A type of advertising strategy that reaches out to potential customers directly, using emails, mail, and phone calls, bypassing traditional retail channels.