Which of the Following Is TRUE About Price Discrimination

question 92

Multiple Choice

Which of the following is TRUE about price discrimination?

• A)It can only be used by monopolistic firms.
• B)It is only possible if the good cannot be resold.
• C)It maximizes consumer welfare since each consumer pays only what he is willing to pay.
• D)All of the above are true.

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Definitions:

Gross Profit Margin

A financial metric that measures the percentage of revenue exceeding the cost of goods sold.

Cost Of Goods Sold

The total expense incurred by a business to manufacture or acquire products that were sold during a specific period.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making or selling products.

Profitability

A financial metric used to assess the ability of a business to generate earnings relative to its revenue, assets, equity, or other financial metrics.