Which of the Following Is an Example of Price Discrimination

question 379

Multiple Choice

Which of the following is an example of price discrimination?

• A) UPS charges more if a package is sent from New York to Hawaii and less if it is sent from New York to New Jersey.
• B) Frank's Furniture shop charges no delivery fee for furniture delivered within Dutchess County but charges $40 delivery fee outside of the county.
• C) Albert pays 25 percent less on prescription drugs because he is a senior citizen.
• D) Only answers A and B are correct.
• E) Answers A, B, and C are all correct.

Calculate and analyze direct materials and labor variances, including price, quantity, and efficiency variances.

Determine the responsibility for variances in direct material costs.

Apply flexible budget principles to forecast costs and income under varying production levels.

Understand the relationship between fixed costs, variable costs, and production volume in financial planning.

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Definitions:

Marginal Returns

Marginal Returns refer to the additional output or benefit received from increasing one unit of a particular input while keeping other inputs constant.

Marginal Cost

The incremental cost associated with the production of an extra unit of a product or service.

Marginal Cost Curve

A curve that displays the additional cost associated with producing one more unit of output, typically showing how marginal cost changes with changes in production volume.

Total Cost Curve

A graph that shows the total cost incurred by a firm in the production of goods or services at different levels of output.