Which of the Following Is a Reason Why a Firm

question 104

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 transaction costs associated with selling the product exceed the price of the product.

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Definitions:

Unconscious

In Freud’s topographic model, the part of personality that contains material that cannot easily be brought into awareness.

Implicit Punishments

Penalties for undesirable behavior that are not directly expressed or are implied, affecting behavior modification subtly.

Defense Mechanism

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.

Psychoanalysis

A therapeutic approach and theory of personality development that focuses on unconscious motives and conflicts, developed by Sigmund Freud.