Which of the Following Is a Reason Why a Firm

question 95

Multiple Choice

Which of the following is a reason why a firm would not engage in price discrimination?

• A)Price discrimination is illegal in some western states and the owners of firms in these states face civil or criminal prosecution if they engage in price discrimination.
• B)Some firms are not able to segment the market for the products they sell.
• C)Some firms do not want to violate the law of one price.
• D)The transactions costs associated with selling the product exceed the price of the product.

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Definitions:

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Steak

A slice of meat, typically beef, cooked by grilling, frying, or broiling, and served as a main dish.

Hamburger

A popular food item consisting of cooked ground meat, usually beef, placed inside a sliced bun, often accompanied by various toppings.

Absolute Value

The absolute value of a number is its distance from zero on the number line, without considering direction; it is always positive.