Which of the following will prevent firms from engaging in price discrimination?
A)yield management
B)arbitrage
C)transactions costs
D)odd pricing

Question

Quizplus · Accepted Answer

Arbitrage is the process of buying a good at a lower price in one market and then selling it in a higher-priced market, leading to the elimination of price discrimination. If firms engage in price discrimination, they will face arbitrage, which will result in their profits being eroded. Yield management, transactions costs, and odd pricing are techniques that can be used to facilitate price discrimination.

Which of the Following Will Prevent Firms from Engaging in Price