Quantity Discrimination Makes Sense If

question 87

Multiple Choice

Quantity discrimination makes sense if

• A)buyers of smaller quantities are more price sensitive than buyers of larger quantities.
• B)buyers of smaller quantities are less price sensitive than buyers of larger quantities.
• C)demand for the good is perfectly elastic.
• D)the lower price for larger quantities encourages all consumers to purchase the larger quantity.

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies by reporting these profits as income.

Fair Value Method

An accounting approach that assesses assets and liabilities at their current market value rather than historical cost.

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies, recognizing income in proportion to ownership.

Gross Profit

The difference between revenue and the cost of goods sold before expenses are subtracted.