Reference: Ref 14-3 (Figure: PPD) Refer to the Figure

question 145

Multiple Choice

Reference: Ref 14-3 (Figure: PPD) Refer to the figure. Which of the following statements best explains why a firm that perfectly price discriminates would sell additional units beyond a units of output?

• A) A firm will not sell beyond a units of output. The firm will only sell exactly a, as it is the profit-maximizing rate of output for this firm.
• B) The marginal cost is less than consumers' willingness to pay for these units.
• C) The marginal cost is greater than consumers' willingness to pay for these units.
• D) A firm will not sell beyond a units of output, since the marginal cost is greater than the marginal revenue for these units.

---

Definitions:

Limitations

Constraints or restrictions that affect the scope, effectiveness, or progress of a project, study, or business strategy.

BCG Matrix

BCG Matrix is a strategic business tool developed by the Boston Consulting Group to help organizations analyze and make decisions about their product portfolio, classifying products into four categories: Stars, Cash Cows, Question Marks, and Dogs.

Strategic Decisions

High-level, directional choices made by an organization to achieve long-term objectives and secure competitive advantage.

BCG Matrix

The BCG Matrix is a strategic planning tool that helps organizations evaluate their product portfolio based on market growth and market share, categorizing them into four quadrants.