Which of the Following Is a Real Example of Price

question 246

Multiple Choice

Which of the following is a real example of price discrimination?

• A) Airlines set different prices for business people and vacationers.
• B) Publishers charge high prices on hardback and low price on paperback books.
• C) IBM's regular version of a printer that prints at 10 pages per minute is more expensive than the Series E that prints five pages per minute.
• D) All of these examples are real.

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Definitions:

Retained Earnings

The portion of a company's profits kept in the business after dividends are paid to shareholders, used for reinvestment or to pay off debt.

Non-controlling Interest

An ownership interest in a corporation where the percentage of shares owned does not give the shareholder the control of the company.

Debit Entry

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Full Goodwill Method

An accounting approach where goodwill is calculated as the difference between the purchase price of a subsidiary and the fair value of its identifiable net assets, including both the minority and majority interest.