Which of the Following Conditions Would Prevent a Firm from Setting

question 213

Multiple Choice

Which of the following conditions would prevent a firm from setting different prices in different markets?

• A) possibility of arbitrage for buyers between different markets
• B) law enforcement preventing smuggling from occurring
• C) government intervention forcing the firm to reduce the level of output
• D) government imposition of a price ceiling

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, and a desire to do a task well.

Freudian Theory

Freudian Theory postulates the existence of unconscious mental processes, sexual and aggressive instincts, and the defense mechanisms of the psyche.

Reality Principle

The reality principle is a psychoanalytic concept describing the process of delaying gratification of desires when necessary, based on the understanding of the constraints of the physical and social world.

Superego

A component of Freud's psychoanalytic theory representing the moral conscience and ideals acquired from society and parents.