To Practice Price Discrimination,a Firm

question 45

Multiple Choice

To practice price discrimination,a firm:

• A)must be facing a relatively elastic demand curve.
• B)must have customers with different elasticities of demand.
• C)must not be able to distinguish between customers based on elasticities of demand.
• D)must not be able to prevent resale of the product.
• E)must be a price taker.

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Definitions:

Company Center

Likely a feature or section within business or accounting software that provides an overview or management tools for company information and operations.

Temporary Accounts

Accounts in accounting that are closed at the end of the accounting period and include revenues, expenses, and dividends accounts.

Accounting Period

An accounting period is a specific time span during which financial activities are recorded and compiled into financial statements.

Permanent Accounts

Accounts that carry their ending balances over to the next accounting period, such as assets, liabilities, and equity accounts.