Which of the Following Would Be an Effective Method for Firms

question 226

Multiple Choice

Which of the following would be an effective method for firms to ensure profit from price discrimination when the possibility of arbitrage exists?

• A) set a single price for all markets
• B) supply products only to one market
• C) make products sold to each market have an exclusive feature
• D) request law enforcement to eliminate the possibility of arbitrage

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Definitions:

Net Income

The total revenue of a company minus the total expenses, indicating the profit earned over a specific period.

Organizational Expenses

Costs incurred during the formation of a corporation, partnership, or any business entity, such as legal and administrative fees.

Intangible Assets

Non-physical assets such as patents, trademarks, and goodwill that have value to a business.

Balance Sheet

A financial document that outlines the resources, obligations, and shareholder equity of a company at a given point, showing its economic condition.