A perfectly competitive firm cannot practice price discrimination because
A) each consumer in a perfectly competitive market has the same willingness to pay.
B) the firm can only charge the market price.
C) a firm that breaks even in the long run cannot afford to engage in yield management.
D) it does not advertise; this prevents the firm from marketing its product to different segments of the market.
Question 2
Financial securities that represent promises to repay a fixed amount of funds are known as
A) stocks. B) pension funds.
C) bonds. D) insurance premiums.
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