Which of the Following Is Not a Condition for a Firm

question 48

Multiple Choice

Which of the following is not a condition for a firm to engage in price discrimination?

• A)Consumers are partitioned into two or more types, with one type having a more elastic demand than the other.
• B)The firm has a means of identifying consumer types.
• C)The consumers are assured to be sincere in telling their true natures.
• D)There is no resale market for the good.

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Definitions:

Interest Rates

The amount charged by lenders as a percentage of the amount borrowed, representing the cost of borrowing money.

Yields To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, not necessarily its market value.

Mature

Refers to when a bond reaches its expiry date-payback or when a market or company has reached a state of equilibrium with little growth.