Pizza Joints Often Offer Substantially Lower Prices for Pizza Picked

question 78

Multiple Choice

Pizza joints often offer substantially lower prices for pizza picked up at the shop than for delivered pizzas even though they charge a delivery fee. This may be an attempt at

• A)perfect price discrimination.
• B)group price discrimination.
• C)quantity discrimination.
• D)second-degree price discrimination.

---

Definitions:

Annual Coupon

The annual interest payment made to bondholders, expressed as a percentage of the bond's face value.

Face Value

The nominal value printed on a bond or stock certificate that indicates the amount due at maturity for bonds or the value of a share of a stock.

After-Tax Cost of Debt

The net cost to a company for borrowing funds after factoring in tax deductions on interest expenses.

Coupon Rate

The yearly rate of interest that the issuer of a bond pays to bondholders, typically shown as a percent of the bond's nominal value.