Which of the Following Is Not an Example of Price

question 314

Multiple Choice

Which of the following is not an example of price discrimination?

• A) airlines charging lower prices to travelers who stay over a Saturday night
• B) student discounts at movie theaters
• C) back-to-school sales
• D) discounted coffee for senior citizens at restaurants

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Definitions:

Fixed Expenses

Expenses that do not change in total over a short period of time, regardless of the level of outputs or activity levels.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after accounting for the direct costs and expenses attributable to that segment.

Traceable Fixed Expenses

Costs that are consistently the same in total but can be directly linked to a specific department, project, or product.

Net Operating Income

A profitability measure that calculates a company's income after operating expenses are subtracted but before deducting interest and taxes.