If a Firm Wishes to Engage in Price Discrimination,which of the Following

question 41

Multiple Choice

If a firm wishes to engage in price discrimination,which of the following conditions must be met?

• A)The demand curve must be horizontal.
• B)It must be possible to prevent resale of the good from low-paying to high-paying customers.
• C)The supply curve must be horizontal.
• D)Many identical firms in the market must each have a small share of total industry output.
• E)Price must be less than marginal cost.

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Definitions:

Antitrust Exemption

Legal provisions that allow certain industries or companies to avoid full compliance with antitrust laws, often justified by arguments of national interest or market efficiency.

Voting Paradox

A situation in collective decision-making where individual preferences do not result in a consistent collective order of preferences, showing the complexity of social choice.

Impossibility Theorem

A theory stating that no rank-order voting system can meet certain desirable criteria, famously outlined by Kenneth Arrow.

Majority Rule Voting

A decision-making process where policies, leaders, or propositions are decided based on receiving more than half of the total votes cast.