Price Discrimination Refers to

question 80

Multiple Choice

Price discrimination refers to

• A)the practice of charging different prices to different buyers for goods of like grade and quality.
• B)an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor.
• C)the practice of charging a very low price for a product with the intent of driving competitors out of business.
• D)a conspiracy among firms to set prices for a product or service.
• E)a seller's requirement that the purchaser of one product also buy another product in the line.

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Definitions:

Safety Stock

Extra inventory kept on hand to prevent stockouts caused by variations in supply and demand.

Lead Time

The time interval between the initiation and completion of a process, such as the period from placing an order to its delivery.

Safety Stock

Inventory held in reserve to guard against stockouts caused by variability in demand or supply chain delays.

Lead Time

The time interval from the initiation of a process (such as placing an order) to its completion (such as the delivery of goods or services).