​Relative to Simple Pricing,price Discrimination Leads to

question 3

Multiple Choice

​Relative to simple pricing,price discrimination leads to

• A)​Consumer surplus being converted to producer surplus
• B)Increased profits
• C)A simplified pricing schedule
• D)​Both a and b

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Definitions:

Dual Rate

A cost allocation method that separates costs into fixed and variable elements, applying different rates for each in costing calculations.

Single Rate

A method used in cost accounting where a single overhead rate is applied to all units produced, regardless of the department in which they were produced or the resources they consumed.

Fixed Costs

Fixed expenditures that are unaffected by production or sales volumes, encompassing rent, salaries, and insurance.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.