Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A) Firms that can identify two types of consumers can price discriminate perfectly.
• B) Firms can price discriminate only if there is zero competition in the market.
• C) Firms that price discriminate will not reach higher profits.
• D) Firms that can prevent reselling may be able to engage in price discrimination.
• E) Firms can usually price discriminate if they are in a perfectly competitive market.

---

Definitions:

Units-Of-Production Method

An accounting method of depreciation that allocates cost based on the actual usage or production levels of the asset.

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life.

Machine Hours

A measure of the operating time of a machine, used in costing and budgeting to allocate expenses based on usage.

Units-Of-Production

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces.