Which of the Following Is True About Price Discrimination

question 60

Multiple Choice

Which of the following is true about price discrimination?

• A)When there are a number of competing firms, price discrimination is less likely because competitors tend to undercut the high prices charged those discriminated against.
• B)A profit-maximizing seller will charge a higher price for those with a greater willingness to pay, and a lower price for demanders with a lower willingness to pay.
• C)Price differentials between groups will erode if reselling is easy.
• D)Quantity discounts are a form of price discrimination which allow a seller to charge a higher price for the first unit than for later units.
• E)All of the above are true of price discrimination.

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Definitions:

Negotiations

The process by which parties discuss and arrive at a mutual agreement on matters of common interest.

Union Leader

An individual who represents and defends the interests of a group of workers, helping to negotiate terms of employment such as wages and working conditions with employers.

Strategic View

An approach to decision-making that considers the long-term direction and implications of actions taken by an organization.

Bargaining

The negotiation process between two or more parties to reach a mutually acceptable agreement.