Which Statement Is True

question 141

Multiple Choice

Which statement is true?

• A)Only monopolists can truly engage in price discrimination.
• B)Price discrimination violates our basic constitutional rights.
• C)Price discrimination occurs when a seller charges two or more prices for different goods or services.
• D)The firm that practices price discrimination needs to be able to distinguish between two or more separate groups of buyers.

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Definitions:

Free-Market System

A type of economic system where prices for goods and services are determined by the open market and by consumers. In a free-market system, the laws and forces of supply and demand are free from any intervention by a government or other authority.

Coordinating Mechanism

Systems and processes that facilitate the efficient allocation and use of resources within an economy or organization.

Command Economy

An economic system in which the government or a central authority controls all major aspects of production and distribution.

Manufacturers Decide

The process by which companies determine what products to produce, how much to produce, and at what price to sell based on market demand and other factors.