Which of the Following Is Necessary in Order for a Firm

question 43

Multiple Choice

Which of the following is necessary in order for a firm to successfully practice price discrimination?

• A)The firm must practice product differentiation.
• B)The demand for the firm's product is inelastic.
• C)The firm must be able to segment the market for the product.
• D)The firm's transactions costs must be zero.

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Definitions:

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since its acquisition, reflecting its loss in value over time.

Special Price

A temporary discounted offer on a product or service intended to attract customers or accelerate sales.