(Figure: Perfect Price Discrimination I) Under Perfect Price Discrimination

question 52

Multiple Choice

(Figure: Perfect Price Discrimination I) Under perfect price discrimination, consumer surplus is $____.

• A) 0
• B) 9
• C) 22.50
• D) 37.50

---

Definitions:

Standard Costing System

An accounting method that uses standard costs for costing inventory and measuring efficiency.

Board Metres

A unit of measure used in the lumber industry to quantify the volume of wood.

Ideal Standards

Theoretical cost benchmarks assuming perfect operating conditions, used for planning and control.

Standard Cost System

An accounting method that applies predetermined costs to production and inventory rather than historical costs, to help managers control costs.