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:

Secondary Circular Reactions

Secondary circular reactions are a developmental phase in infants, occurring around 4-8 months, characterized by the repetition of actions that produce effects outside the body, showing an early awareness of cause and effect.

Sensorimotor

The first stage in Piaget's theory of cognitive development, where infants learn through interacting with the environment, from birth to about 2 years of age.

Concrete Operational

A stage in cognitive development, according to Piaget, where children gain the ability to think logically about concrete events.

Preoperational

A stage in Jean Piaget's theory of cognitive development during which children aged approximately 2 to 7 years old develop memory and imagination.