Price Discrimination Is Used When a Seller Faces Different Demand

question 145

Multiple Choice

Price discrimination is used when a seller faces different demand curves in different markets because:

• A) no other pricing methods are feasible.
• B) the practice eliminated waste.
• C) profits are greater than selling at a single price.
• D) profits are less than when selling at monopoly prices.

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Definitions:

Publicly Traded Corporations

Companies whose shares are traded on public stock exchanges, allowing them to be bought by and sold to the general public.

Self-dealing

A situation in which an individual with fiduciary duties acts in their own best interest rather than in the interest of the beneficiaries, potentially leading to a conflict of interest.

Business

The practice of making one's living by engaging in commerce, trade, or services.

Personal

Relating to or affecting a particular person rather than anyone else.