Which of the Following Quotes by a Store Manager Describes

question 100

Multiple Choice

Which of the following quotes by a store manager describes price discrimination in action?

• A)"Since bulk goods are cheaper to package,I can offer a lower price."
• B)"I can get a 4-litre jug of milk from the supplier for less than four 1-litre cartons,so I can sell it for less per litre."
• C)"We offer our employees a 10 percent price discount."
• D)"I offer discounts if you buy 12 apple juice cartons in one box,although it costs me the same as if I split it up and sell them separately."
• E)"We set price equal to average variable cost."

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before deduction of overheads, interests, and taxes.

Gross Sales

The revenue earned from the sale of merchandise to customers.

Cost of Shoes

The cost of shoes encompasses the total expenses incurred in manufacturing or purchasing shoes, including materials, labor, and potentially distribution and marketing costs.

Departments

Distinct areas or divisions within an organization, each responsible for specific tasks or functions.