When Hotels Drop Their Rates on the Weekends, This Form

question 135

Multiple Choice

When hotels drop their rates on the weekends, this form of price discrimination is known as ________ pricing.

• A) channel
• B) image
• C) product-form
• D) time
• E) location

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Definitions:

Fair Return

A reasonable profit level that a utility or service provider is allowed to earn, taking into account the need to provide goods or services at fair prices.

Economic Profit

The contrast between total financial gain and overall financial obligations, including both explicit and implicit expenditures.

Marginal Cost

The financial burden of producing a further unit of a product or service.

Average Cost Pricing

A pricing strategy where the price is set based on the average cost per unit produced, including fixed and variable costs.