Which of the Following Must Exist for a Firm to Engage

question 308

Multiple Choice

Which of the following must exist for a firm to engage in price discrimination?

• A) The firm must be able to identify and separate its buyers into different classes, and the low-price buyers cannot resell the product to the high-price buyers.
• B) The firm must face an inelastic demand.
• C) The firm must be able to realize economies of scale.
• D) The firm must have no more than one class of buyer.
• E) The firm must be a natural monopoly.

---

Definitions:

Associative Strength

The measure of the relationship between a conditioned stimulus and an unconditioned stimulus, indicating how strongly two stimuli are linked in an individual's mind.

Maximum Conditioning

The point at which a conditioned response reaches its highest level of strength or efficiency through the learning process.

Blocking

The prevention of the acquisition of a conditioned response (CR) to a second conditioned stimulus (CS2) when two stimuli are paired with an unconditioned stimulus (UCS) and conditioning has already occurred to the first stimulus (CS1).

Conditioned Stimulus

A stimulus that was once neutral but, upon being paired with an unconditioned stimulus, begins to elicit a conditioned response.