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Sedic camar
on Oct 27, 2024

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To engage in price discrimination,a firm must be:

A) a price taker.
B) one of many firms in an industry.
C) unable to identify consumers whose elasticities differ.
D) a price setter and able to identify consumers whose elasticities differ.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different consumers.

Price Setter

A business or entity that has the ability to influence or determine the price of goods or services in the market, often due to a lack of competition.

Elasticities Differ

The principle that different goods or services have varying sensitivities to changes in price or income.

  • Recognize the prerequisites for the occurrence of price discrimination and understand its impact on the surplus of both producers and consumers.
  • Examine the correlation among market configurations, pricing strategies, and the capacity of companies to implement price differentiation.
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MN
Maria NewberryNov 02, 2024
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