A Perfect Price Discriminator

question 51

Multiple Choice

A perfect price discriminator

• A) is unable to make an economic profit.
• B) disregards the market demand curve.
• C) charges the maximum price for each unit that consumers are willing to pay.
• D) is able to convince consumers to pay more for each unit than they are willing to pay.

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Definitions:

Physical Count

Physical count involves manually counting all inventory items in a business at a specific time to verify quantities and ensure accuracy in records.

Periodic System

An inventory system where the inventory count is physically updated at specific intervals, and costs of goods sold are calculated at the end of the accounting period.

Moving Average System

A method used in accounting and finance to smooth out data by generating a series of averages of different subsets of the full data set.

Freight-In Costs

Expenses associated with transporting goods from the supplier to the purchaser, typically included in the cost of inventory.