Which of the Following Statements Is Not Correct

question 21

Multiple Choice

Which of the following statements is not correct?

• A)First-degree and third-degree price discrimination work to increase a firm's profits by converting consumer surplus into revenue for the firm.
• B)First-degree and third-degree price discrimination work to increase a firm's profits by more accurately matching willingness to pay to the marginal costs of production.
• C)First-degree price discrimination works to increase a firm's profits by converting consumer surplus into revenue for the firm, while third-degree price discrimination increases a firm's profits by more accurately assessing the willingness to pay of different groups of consumers.
• D)Because it focuses on more accurately assessing the willingness to pay of different groups of consumers, third-degree price discrimination will increase a firm's profits more than will first-degree price discrimination.

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Definitions:

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a given period, indicating the efficiency of inventory management.

Current Ratio

A financial metric that measures a company's ability to pay short-term obligations with its current assets.

Bills Receivable

Financial documents representing money that others owe to an individual or business, expected to be paid within a short period.

Current Liabilities

Financial obligations or debts a company is required to pay within one year or within its normal operating cycle.