If a Physician Cannot Charge Every Patient a Different Price

question 11

Multiple Choice

If a physician cannot charge every patient a different price but can group patients by type and charge each group a different price,this is called

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

---

Definitions:

Modular Homes

Prefabricated homes that are constructed in modules or sections in a factory setting and then transported to a building site where they are assembled.

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that contribute to their creation and delivery.

Overhead

General, ongoing costs to operate a business that aren’t directly tied to producing a product or service, such as rent, utilities, and insurance.

Activity-Based Costing

A financial method which identifies organizational activities and assigns each activity's costs to products and services based on the actual amount they consume.