Question

Which of the following is NOT a condition for a firm to engage in price discrimination? Multiple Choice The consumers are sincere in revealing their true natures. The firm has a means of identifying consumer types. There is no resale market for the good. Consumers are partitioned into two or more types, with one type having a more elastic demand than the other.

Answer 1

Answer:

The correct answer is The consumers are sincere in revealing their true natures.

Explanation:

This is not a condition because the company does not take into account factors of this type to determine price changes, to consider the setting of new prices for products. In order to determine these changes, you must establish real data on the behavior of demand and determine if the goods produced have the characteristic of being storable to be traded over a longer period of time.