Which of the Following Is an Example of Price Discrimination

question 135

Multiple Choice

Which of the following is an example of price discrimination?

• A) charging different prices to different groups on the basis of differing abilities to pay
• B) consumer bargain hunting
• C) charging different prices to different groups on the basis of production cost differences
• D) consumers paying a price in excess of the producer's marginal cost

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Definitions:

Operating Activities

The day-to-day activities of a company involved in producing and selling its products or providing services, which generate most of the company's cashflows.

Indirect Method

A technique used in cash flow statements to adjust net income for non-cash transactions, depreciation, and changes in working capital.

Depreciation Expense

The portion of an asset's initial cost allocated over a specific period as an expense, reflecting its usage and deterioration.

Operating Activities

Activities that relate directly to the business's primary operations, like selling products or services, as opposed to investment or financing activities.