A Producer in Philadelphia Uses Zone Pricing

question 110

Multiple Choice

A producer in Philadelphia uses zone pricing.The producer is selling widgets for $150/ton in the Eastern Zone,which includes Richmond and Baltimore.The actual freight cost from its plant to Baltimore is $70/ton and from its plant to Richmond is $80/ton.In this situation,

• A)one ton of widgets costs a Baltimore buyer the same as a Richmond buyer.
• B)both buyers would pay $300 for one ton of widgets.
• C)one ton of widgets delivered to Richmond would cost the buyer $230.
• D)one ton of widgets delivered to Baltimore would cost the buyer $220.
• E)None of these answers is correct.

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Definitions:

Pluralistic Compliance

The phenomenon where individuals conform to the perceived behavior or beliefs of a group, even if they might personally disagree, due to the assumption that the group's consensus represents the correct course of action.

Fear

An emotional response to a perceived threat, characterized by increased alertness, anxiety, and a survival-oriented behavior.

Message

Any verbal, written, or signaled communication sent from one individual or group to another.

Jigsaw Classroom

An educational approach designed to minimize racial conflict among school children, promote better learning, improve student motivation, and increase enjoyment of the learning experience.