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:

Theory X

The assumption that people dislike work, lack ambition, act irresponsibly, and prefer to be led.

Motivating

The process of stimulating someone's interest or enthusiasm for doing something.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone; the state of being accountable.

Physiological Needs

basic physical requirements for human survival, such as air, water, food, shelter, and sleep, representing the base layer of Maslow's Hierarchy of Needs.