Which of the Following Is Necessary for a Firm to Ensure

question 116

Multiple Choice

Which of the following is necessary for a firm to ensure profitable price discrimination?

• A) The firm must sell a standardized product.
• B) The firm must be able to keep its national markets separate.
• C) The firm must encourage other firms and competitors to engage in arbitration.
• D) Products sold by the firm must have same prices elasticities of demand in different countries.
• E) Products must be sold in countries where a small change in prices produces a large change in demand.