Price Discrimination Occurs When

question 1

Multiple Choice

Price discrimination occurs when

• A) firms maximize their profit by setting price equal to marginal cost.
• B) a seller charges different prices to different consumers for the same product or service.
• C) a seller charges the same price to consumers for a different product or service.
• D) a seller charges different prices to consumers, discriminating by race or gender of the consumer.

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Definitions:

Depreciation Deduction

A tax deduction that allows the cost of an asset to be spread over its useful life.

Depreciation Tables

Charts or schedules provided by tax authorities that outline how to depreciate assets over their useful lives for tax purposes.

Land Value

The market value of a piece of land, not including any buildings, improvements, or other structures on it.

Schedule K-1

A tax document used to report the income, losses, and dividends of a partnership or S corporation's shareholders or partners.