If a Firm Wants to Charge Different Customers Different Prices

question 159

Multiple Choice

If a firm wants to charge different customers different prices:

• A) the firm must be a price taker.
• B) firm must be in perfect competition.
• C) firm must be a price setter.
• D) A and B must be true.

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Definitions:

FICA Tax

Federal insurance contributions tax; a U.S. federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

FUTA Tax

The Federal Unemployment Tax Act tax, which employers pay to fund state workforce agencies.

SUTA Tax

State Unemployment Tax Act tax, a payroll tax that employers must pay to fund the government unemployment insurance program.

Payroll Taxes Expense

The total amount of state and federal taxes a company is obligated to pay based on its employees' wages.