Which of the Following Businesses Is Most Likely to Be

question 190

Multiple Choice

Which of the following businesses is most likely to be able to increase its total revenues by employing price discrimination?

• A) an automobile dealership
• B) a retail furniture store
• C) a grocery store chain like Publix or Kroger
• D) a college or university

Understand how budgeted financial statements are integrated from various budget components.

Recognize the categories of expenses in different budgets.

Understand the role of cash and capital expenditures budgets in financial planning.

Understand and describe the budgeting process and its components.

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Definitions:

Ability-To-Pay Principle

The ability-to-pay principle in taxation suggests that taxes should be levied based on an individual's or entity's capacity to pay, meaning those with higher income should pay more.

Cigarette Taxes

Taxes imposed on the sale of cigarettes to discourage consumption and raise government revenue, often used for public health initiatives.

Wedge

The difference between the demand price of the quantity transacted and the supply price of the quantity transacted for a good when the supply of the good is legally restricted. Often created by a quantity control, or quota.

Demand Price

The price of a given quantity at which consumers will demand that quantity.