When Two or More Divisions Mark Up Prices in Excess

question 131

Multiple Choice

When two or more divisions mark up prices in excess of marginal cost:

• A) double marginalization occurs.
• B) two-part pricing occurs.
• C) second-degree price discrimination occurs.
• D) None of the answers are correct.

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Definitions:

React

pertains to an individual's immediate response or reaction to a stimulus or situation, often without extensive analysis.

Implications

The possible outcomes or effects that may result from a particular action, decision, or circumstance, often considered in planning or analysis.

Transactional Leaders

Leaders who focus on the role of supervision, organization, and group performance, often emphasizing the exchange between leader and followers.

Institutionalization

The process by which practices and activities become established norms or standards within an organization or society.