Which of the Following Scenarios Demonstrates Price Discrimination

question 23

Multiple Choice

Which of the following scenarios demonstrates price discrimination?

• A) Bananas at the grocery store are sold for $0.69 per pound.
• B) Tickets to a play are sold for $15 for students and $25 for adults.
• C) General admission concert tickets are sold for $40.
• D) Strawberries are sold for $2.00 per quart in the early summer and $5.00 per quart in the winter.

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Definitions:

Capacity Analysis

The study and evaluation of the production capabilities of a manufacturing facility to understand its maximum output over a period.

Time-Driven Activity-Based Costing

An approach to activity-based costing that uses simple cost drivers like the amount of time required to complete an activity, improving the costing process's simplicity and accuracy.

Tech Support Department

A division within a company responsible for addressing technological issues and providing assistance and guidance on products or services.

Capacity Analysis

The method of calculating the production capabilities required by a company to adapt to fluctuating needs for its products.