If a Physician Can Charge Every Patient a Different Price

question 17

Multiple Choice

If a physician can charge every patient a different price according to their willingness to pay,this is called

• A)First-degree price discrimination
• B)Second-degree price discrimination
• C)Third-degree price discrimination
• D)Fourth-degree price discrimination

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Definitions:

Par Value

A nominal value assigned to a share of stock in the charter of the corporation, often used to determine legal capital.

Shares

Units of ownership interest in a corporation or financial asset, giving the shareholder a proportion of the company's profits.

Treasury Stock

Stocks that the issuing corporation has distributed and then bought back, diminishing the number of shares available for trade on the public market.

Market Value

The present cost at which a product or service is available for purchase or sale in an open market.