Which of the Following Is a Reason Why a Firm

question 95

Multiple Choice

Which of the following is a reason why a firm would not engage in price discrimination?

• A)Price discrimination is illegal in some western states and the owners of firms in these states face civil or criminal prosecution if they engage in price discrimination.
• B)Some firms are not able to segment the market for the products they sell.
• C)Some firms do not want to violate the law of one price.
• D)The transactions costs associated with selling the product exceed the price of the product.

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Definitions:

Measurement Bases

The various methods or approaches for determining the value at which assets, liabilities, income, and expenses are recognized and presented in financial statements.

Materiality

The notion of materiality guides the margin of error acceptable, the degree of precision required, and the extent of the disclosure required when preparing general purpose financial statements.

Disclosure Provisions

Legal requirements or policies that necessitate the revelation of certain information to stakeholders or the public, ensuring transparency.

Accounting Standards

Rules and guidelines set by governing bodies that dictate how financial statements should be prepared and presented.