Choose the correct answer: Aa Aa 1. Conditions for price discrimination Price di

Question

Choose the correct answer:

Aa Aa 1. Conditions for price discrimination Price discrimination is the practice of selling the same good at more than one price when the price differences are not justified by cost differences. Evaluate the following statement: Price discrimination is not possible when a good is sold in a competitive market. O False, because competitive firms have market power O False, because competitive firms do not profit maximize by setting marginal revenue equal to marginal cost O None of these choices O True, because competitive firms have no market power Attempts: Grade It Now Save & Continue ONA 3.14 2004-2013 Aplia, All rights 2013 Cengage Learning except as noted. All rights reserved.

Explanation / Answer

D. True, because competitive firms have no market power.

Explanation:

Price discrimaination is only possible when firms have significant market power, inorder to be able to charge different prices.

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