- 23 Which Of The Following Is Not A Characteristic Of 1st Degree 2nd Degree And 3rd Degree Price Discrimination That I 1 (82.98 KiB) Viewed 35 times
23. Which of the following is not a characteristic of 1st-degree, 2nd-degree, and 3rd-degree price discrimination—that is, which characterizes one or more of these forms of price discrimination, but not all three? a) The firm must have market power to engage in price discrimination. b) The firm must be able to prevent resale to engage in price discrimination. c) Customers must differ in their maximum willingness to pay for the good being exchanged. d) The price discrimination results in a deadweight loss. e) All of the above statements correctly characterize 19 degree, 2nd-degree, and 3rd-degree price discrimination. 24. Which of the following statements does not characterize monopolistic competition? a) Many firms make up the supply side of the market. b) Firms can freely enter and exit the market. c) Each firm sells a product that can be differentiated from its competitors. d) Each firm is a price-taker, meaning it is given a market-determined price. e) In long-run equilibrium, each firm makes zero profit.