The Situation in Which a Firm Charges Different Prices for Different

question 56

Multiple Choice

The situation in which a firm charges different prices for different blocks of output is referred to as:

• 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:

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.

Earnings Before Taxes

A company's profitability measure calculated by subtracting all expenses, except taxes, from revenues.

Earnings Per Share

A company's profit divided by its number of outstanding shares of common stock.