If a firm can segment its market, and the parts cannot communicate among themselves, then
A) arbitrage can occur.
B) prices in the segments will tend to be equal over time.
C) arbitrage cannot occur.
D) the different elasticities will be equal over time.
Correct Answer:
Verified
Q47: Interdependence in pricing may leading to
A)predatory pricing.
B)price-fixing
Q48: Firms want to capture consumer surplus.
Q49: "Value pricing" stresses the importance of product
Q50: The price a firm charges may be
Q51: Predatory pricing is a form of barrier
Q53: If I worry that if I cut
Q54: To be effective, pure bundling requires firms
Q55: Prices that firms charge should take into
Q56: Transfer pricing is used by moving companies.
Q57: To price discriminate, firms must face markets
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