The Main Reason Firms Cannot Price Discriminate Under Perfect Competition

question 122

Multiple Choice

The main reason firms cannot price discriminate under perfect competition is because

• A) firms are price takers and cannot set prices for their goods.
• B) firms cannot identify different kinds of consumers perfectly.
• C) some goods are being resold in the market.
• D) there is a lot of heterogeneity among consumers' tastes.
• E) all firms share the same production technology.

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Definitions:

Shays's Rebellion

In 1786-1787, American agriculturalists initiated a violent rebellion opposing state and local authorities' enforcement of taxes and debt rulings.

Central Government

The government entity responsible for the administration and implementation of policies over an entire nation as opposed to local governing bodies.

Pro-Debtor Laws

Legislation designed to protect individuals who owe money, often by offering bankruptcy protections, limiting interest rates, and providing mechanisms for debt relief.

Articles of Confederation

The original constitution of the 13 American states, adopted in 1781 and replaced by the U.S. Constitution in 1789, which provided a loose federal government.