(Figure: Consumer Surplus II) Suppose That a Firm Offers Customers

question 7

Multiple Choice

(Figure: Consumer Surplus II) Suppose that a firm offers customers either (1) the ability to buy any quantity they desire for $24 per unit or (2) a price of $18 per unit for 15 or more units. Consumer surplus under the quantity discount is _____ than under the $24-per-unit pricing scheme, so the plan to charge these types of consumers a price of $24 per unit is _____ compatible.

• A) $64 more; incentive
• B) $32 less; not incentive
• C) $53 less; incentive
• D) $41 more; not incentive

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Definitions:

Situational Risk

The risk of harm or danger arising from specific circumstances or conditions of a particular situation.

Ethnographic Danger

Risks or ethical dilemmas researchers may face while conducting in-depth studies within communities or cultures.

Ambient Risk

A form of background risk that is present in the environment or surroundings, typically external to a system or organization.

Unnecessary Risk

A hazard or danger embarked upon without a justifiable purpose, often avoidable and unwarranted.