One Requirement for a Firm Pursuing a Price-Discrimination Strategy Is

question 126

Multiple Choice

One requirement for a firm pursuing a price-discrimination strategy is the ability to segment the market for its product.This means that

• A)the firm must set different prices for different regions where the product is sold.
• B)the firm must be willing to offer price discounts for senior citizens and children.
• C)the firm must be able to divide the market in a way that makes arbitrage impossible.
• D)the firm must choose a marketing strategy that appeals to different segments of the economy.

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Definitions:

Long-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a long period, taking into account all possible changes in inputs and technology.

Horizontal Curve

A curve on a graph that shows an unchanged value over time or is parallel to the horizontal axis.

Product Demand

The desire and willingness of consumers to purchase a specific quantity of a good or service at a given price over a specific period.

Resource Prices

Costs associated with the inputs used in the production of goods and services, such as materials and labor.