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:

Variable Costs

Expenses that change in proportion to the activity or volume of business, such as materials and labor costs.

Fixed Costs

Rephrased: Expenses that remain constant regardless of the company's level of production or business activity.

Trucking Department

A specialized division within a company responsible for the management and operation of trucking logistics, including transportation and delivery services.

Peak-Period Requirements

The increased demand or resources needed during the busiest or most active times for a business or service.