Which of the Following Is Necessary for a Firm to Ensure
Which of the following is necessary for a firm to ensure profitable price discrimination?
A)The firm must sell a standardized product.
B)The firm must be able to keep its national markets separate.
C)The firm must encourage other firms and competitors to engage in arbitration.
D)Products sold by the firm must have same price elasticities of demand in different countries.
E)Products must be sold in countries where a small change in prices produces a large change in demand.
If a firm is unable to keep its national markets separate,individuals or businesses may undercut its attempt at price discrimination by engaging in
In which of the following conditions does arbitrage occur?
A)When a firm offers a product at low prices through discount coupons and promotions
B)When a firm sells a product at higher prices to make a profit from relatively fewer sales
C)When a firm imports products from a manufacturer and distributes them directly through retail outlets
D)When a firm purchases products in a country where prices are lower and resells them in a country where prices are higher
E)When a firm prices its products at the least cost,risking losses,in order to grab market share
A measure of the responsiveness of demand for a product to changes in price is known as
A)the demand to price ratio.
B)demand and price dynamics.
D)demand function of pricing.
E)price elasticity of demand.