Using a Strategy of Price Discrimination, a Firm Can Increase

question 170

Multiple Choice

Using a strategy of price discrimination, a firm can increase its profits by offering lower prices to its customers who are willing to pay above the firm's:

• A) average costs.
• B) marginal costs.
• C) fixed costs.
• D) total costs.

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Definitions:

Presentment

The act of making a demand for the drawee to pay.

Dishonored

refers to a financial instrument, like a check, being refused by the bank upon presentation for payment due to insufficient funds or other reasons.

Endorses

The act of signing the back of a check or any other document, which signifies agreement, approval, or endorsement of its contents.

Instrument

A writing that serves as evidence of the right to payment of money.