Which of the Following Is Not Necessary in Order for a Firm

question 4

Multiple Choice

Which of the following is not necessary in order for a firm to engage in price discrimination?

• A)The producer must face an inelastic demand curve.
• B)The producer must face a downward-sloping demand curve.
• C)There must be at least two identifiable classes of consumers with different price elasticities of demand.
• D)The producer must be able, at little cost, to distinguish between the different classes of buyers.
• E)It must be impossible for one buyer to resell to another.

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Definitions:

Sale and Leaseback

A financial transaction where an entity sells an asset and immediately leases it back from the buyer, allowing the seller to continue using the asset while freeing up capital.

Leasing Reasons

The motives or considerations for choosing to lease assets, such as financial flexibility, tax advantages, or capital preservation.

Lease-Buy Analysis

A financial comparison used to decide whether to lease or buy an asset based on cost effectiveness over the asset's useful life.

Equipment

Tangible property used in operations, such as machinery, computers, and tools, which has a useful life beyond a single reporting period.