Pharmaceuticals with High Fixed Costs Can Benefit with the Practice

question 124

Multiple Choice

Pharmaceuticals with high fixed costs can benefit with the practice of price discrimination because:

• A) high fixed costs create incentive for pharmaceuticals to sell more.
• B) charging different prices to different customers generates different levels of fixed costs.
• C) profit from customers paying high prices allows pharmaceuticals to cover part of the fixed costs.
• D) extra profit from customers paying low prices allows pharmaceuticals to cover part of the fixed costs.

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Definitions:

Objective Tests

Standardized assessments that measure an individual's knowledge or performance on a specific set of criteria with right or wrong answers.

Projective Tests

Psychological assessments where individuals respond to ambiguous stimuli, revealing hidden emotions, desires, and internal conflicts.

Cognitive Learning

A type of learning that involves mental processes, such as thinking, knowing, problem-solving, remembering, and paying attention.

Operant Conditioning

A simple form of learning in which an organism learns to engage in behavior because it is reinforced.