Third Degree Price Discrimination Is Defined As

question 35

Multiple Choice

Third degree price discrimination is defined as:

• A) While rarely prosecuted, it is illegal and a misdemeanor versus a felony as defined by the Surface Transportation Board Act
• B) charging different prices to different buyers who use the same commodity or service
• C) permissible only when the buyer has requested rebates
• D) the least serious type of discrimination as versus first degree

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Definitions:

Dividend-Payout Policies

Strategies a company uses to decide the portion of profits it will distribute to shareholders as dividends versus retaining for reinvestment.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating the degree of variation from the average.

Hedge Ratio

A ratio used to calculate the number of derivatives needed to hedge a particular position, aiming to provide protection against adverse price movements.