Price Discrimination Requires the Firm to

question 173

Multiple Choice

Price discrimination requires the firm to

• A) separate customers according to their willingness to pay.
• B) differentiate between different units of its product.
• C) engage in arbitrage.
• D) use coupons.

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Definitions:

Inventory Turnover

A measure of how quickly a company sells and replaces its stock of goods during a certain period, indicating efficiency in managing inventory.

Receivables Turnover

A measure of a company's efficiency in collecting its sales on credit, calculated by dividing sales by average accounts receivable.

Payables Turnover

A financial ratio that measures how quickly a company pays its suppliers by comparing net credit purchases with the average accounts payable over a period.

Cash Cycle

The period it takes for a company to convert its investments in inventory and other resources into cash flows from sales.