Price Discrimination Is Prevented in Situations Where

question 5

Multiple Choice

Price discrimination is prevented in situations where

• A) customers can resell the good.
• B) firms have monopolies.
• C) there are legal barriers to entry.
• D) there are no close substitutes for the good or service.
• E) customers have different willingnesses to pay for the good.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments by calculating the discount rate that makes the net present value of cash flows zero.

Mutually Exclusive

Situations or events that cannot occur at the same time.

Investment Proposals

Detailed written offers to purchase new or existing securities, outlining the terms and conditions for investment.

Administrative Processing

Procedures and activities related to the management and execution of office tasks and functions.