A Firm Cannot Price Discriminate If It

question 66

Multiple Choice

A firm cannot price discriminate if it

• A) operates in a competitive environment.
• B) has a downward-sloping demand curve.
• C) has a business that is regulated.
• D) has perfect information about market demand.
• E) can prevent resale of its product.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Printer

A device that converts digital documents into physical copies on paper or other printing materials.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period of time.

Income Elasticity

A measure of how much the demand for a good or service changes relative to a change in consumers' income.