Which of the Following Conditions Is Not Necessary for a Firm

question 4

Multiple Choice

Which of the following conditions is not necessary for a firm to be able to engage in price discrimination? I. The firm must be able to produce to the point at which price equals marginal revenue.
II) The firm must easily be able to identify consumers with different demand elasticities.
III) The firm must be able to prevent resale of the item it produces and sells.

• A) I only
• B) III only
• C) Both I and II only
• D) Both II and III only

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Definitions:

Logical Fallacy

A flaw in reasoning that leads to incorrect arguments, often invisible in the argument's structure but critically undermining its validity.

Causally Related

Refers to entities or events connected by a cause-and-effect relationship, where one directly influences or brings about the other.

Randomly Assigned Control Group

A group of subjects in an experiment that is randomly selected to not receive the treatment, allowing for a comparison to evaluate the effect of the treatment.

Observational Studies

Research methods that involve assessing subjects without manipulating the environment or the participants, used to identify and describe natural occurrences.