Despite the Gain from Higher Profits,firms Are Not Always Able

question 67

Multiple Choice

Despite the gain from higher profits,firms are not always able to price discriminate because

• A) they are unable to partition their customers into distinct groups.
• B) it is always illegal to price discriminate in the United States.
• C) they already hold a large degree of market power.
• D) they already provide their goods at the lowest-possible prices.
• E) they can easily determine each customer's reservation price.

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Definitions:

Mortgagees

Banks or other financial institutions that lend money to borrowers (mortgagors) for the purchase of property, holding a lien on the property as security for the repayment of the loan.

Security Interest

A security interest is a legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt.

Financing Statement

A document filed to indicate a security interest in personal property, used to publicize a creditor's right to possible repossession of goods.

Perfection

In legal finance, it refers to the process of securing a lien or interest in a borrower's collateral, making it legally enforceable against third parties.