Which of the Following Would Be an Effective Method for Firms

question 226

Multiple Choice

Which of the following would be an effective method for firms to ensure profit from price discrimination when the possibility of arbitrage exists?

• A) set a single price for all markets
• B) supply products only to one market
• C) make products sold to each market have an exclusive feature
• D) request law enforcement to eliminate the possibility of arbitrage

Understand the importance and application of probability density functions.

Know the concept and calculation of a standard normal distribution.

Distinguish between continuous and discrete random variables.

Grasp the relationship between standard deviation values and the shape of a normal curve.

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Definitions:

Contribution Margin Ratio

The contribution margin ratio is the percentage of revenue that exceeds total variable costs, indicating how much of the sales revenue is available to cover fixed costs and generate profit.

Sales Dollars

The total revenue generated from the sale of goods or services, expressed in monetary units.

After Tax Profit

The net income a company retains after deducting all taxes owed to the government.

Income Tax Rate

The percentage of an individual or corporation's income that is paid to the government as tax.