A Firm Cannot Price Discriminate If

question 9

Multiple Choice

A firm cannot price discriminate if

• A) its has declining marginal revenue.
• B) it operates in a competitive market.
• C) buyers only reveal the price they are willing to pay for the product.
• D) it has a constant marginal cost.

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Definitions:

Number of Hours

The total amount of time, counted in hours, spent or required for a particular activity or process.

Monthly Profit

The net amount of money gained by a business during a one-month period after all expenses have been paid.

Binding Constraint

A constraint in an optimization problem that directly limits the ability to achieve an optimal solution, where any relaxation of the constraint would improve the outcome.

Slack

The amount of time a project task can be delayed without causing a delay to subsequent tasks or the overall project deadline.