Price discrimination will occur when a firm can segment its existing and potential customers for a good into different groups based on Group of answer choices education. how much they value the good. income. knowledge of the product.
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Step 1: Price discrimination occurs when a firm can identify different groups of customers who are willing to pay different prices for the same good or service. Show more…
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The proportionate demand curve of the firm depicts the demand for the good of one firm assuming that the other firms in the group do not change the price of their good
Which is NOT a necessary condition for price discrimination to exist? Group of answer choices The firm must face a downward sloping demand curve. The firm must identify buyers with different elasticities of demand. The firm must be able to prevent resale of the product or service. The firm must establish different prices to reflect marginal cost.
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Markup pricing is.... Group of answer choices appropriate if the product is significantly more distinctive than others on the market a fairly simple pricing approach. insensitive to external factors such as market demand, nature of demand, or competition. cost of goods sold is relatively low. often seen in the manufacturing industry.
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