Which of the Following Is Not a Requirement for a Successful

question 114

Multiple Choice

Which of the following is not a requirement for a successful price discrimination strategy?

• A)A firm must have the ability to charge a price greater than marginal cost.
• B)Some consumers must have a greater willingness to pay for the product than other consumers, and the firm must be able to know what prices consumers are willing to pay.
• C)The firm must be able to prevent arbitrage.
• D)Transactions costs must be the same for all consumers.

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Definitions:

Uncertainty-Avoidance Cultures

Cultures that have a low tolerance for uncertainty and ambiguity, leading to well-established norms and rules to minimize the unpredictability of future events.

Openness To Change

The willingness or ability to accept and adapt to new ideas, situations, or innovations.

Geert Hofstede

A Dutch social psychologist known for his research on cross-cultural groups and organizations, especially for developing the cultural dimensions theory.

Uncertainty Avoidance

A cultural dimension that describes the extent to which a society tolerates ambiguity and uncertainty, favoring clear rules and stability.