Which of the Following Is the Main Principle Behind Price

question 45

Multiple Choice

Which of the following is the main principle behind price discrimination?

• A) If the demand curves are different, it is more profitable to set different prices in different markets than a single price that covers all markets.
• B) To maximize profit the firm should set a higher price in markets with more inelastic demand.
• C) Arbitrage makes it difficult for a firm to set different prices in different markets thereby reducing the profit from price discrimination.
• D) All of the answers are correct.

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Definitions:

Shared Responsibility

A principle where multiple parties are held accountable for the outcomes of a particular objective or task, emphasizing collaboration.

Nonprofit Boards

Governing bodies responsible for overseeing the mission, strategy, and financial management of nonprofit organizations.

Chief Executive Officer

The highest-ranking executive in a company or organization, responsible for overall operations and decision-making.

Mission

The fundamental objective or purpose of an organization, embodying its values, goals, and aspirations.