Price Discrimination

question 54

Multiple Choice

Price discrimination:

• A)has been illegal in the United States since 1963.
• B)is the practice of charging consumers different prices for the same good or service.
• C)is customarily observed when the sales representative in a store charges each customer what he/she thinks is the highest price the customer will bear.
• D)is most common in perfectly competitive industries.

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Definitions:

Debt To Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects cash from its credit sales by dividing net credit sales by the average accounts receivable.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period.

Allowance For Doubtful Accounts

A contra-asset account that reduces the total receivables on the balance sheet by the amount expected not to be collected.