Which of the Following Must a Firm Be Able to Do

question 358

Multiple Choice

Which of the following must a firm be able to do to successfully price discriminate?
i.divide buyers into different groups according to their willingness to pay
ii.prevent resale of the good or service
iii.identify into which group (high willingness to pay or low willingness to pay) a buyer falls

• A) ii only
• B) i and ii
• C) i and iii
• D) iii only
• E) i, ii, and iii

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Definitions:

Export Subsidies

financial support from governments to domestic companies for the purpose of promoting goods for export, aimed at increasing competitive advantage on the global stage.

Free Trade Agreement

A pact between two or more nations to reduce barriers to imports and exports among them by eliminating tariffs and import quotas.

Mexican Consumers

Individuals or households in Mexico that purchase goods and services for personal use.

Intellectual Property

Refers to creations of the mind for which exclusive rights are recognized, such as inventions, literary and artistic works, symbols, names, and images.