When Dominant Pizza Is Willing to Sell a Pizza to a Student

question 92

Multiple Choice

When Dominant Pizza is willing to sell a pizza to a student who lives on-campus at a lower price than it sells the identical pizza to a student who lives a block away from the campus, the pizza firm is

• A)implementing unfair pricing practices.
• B)incurring a loss on on-campus sales.
• C)eliminating all competition.
• D)located close to the campus.
• E)practising price discrimination.

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Definitions:

Income Before Taxes

A company's earnings before tax is deducted, an indicator of financial performance excluding tax expenses.

Cash Sales

Transactions where customers pay for goods or services in cash at the point of sale, resulting in immediate revenue.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay for them at a later date.

Loss from Sale

An unfavorable difference between the selling price of an asset and its book value, leading to a financial loss for the entity.