Price Discrimination

question 89

Multiple Choice

Price discrimination:

• A) can benefit consumers with a lower willingness to pay when compared to other consumers in the market
• B) can be a successful strategy for any firm in a competitive market
• C) tends to decrease the profits of the firm.
• D) is more successful if resale of the product is possible from one consumer to another.

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Definitions:

Debits

Entries on the left-hand side of an accounting ledger, indicating increases in assets or expenses or decreases in liabilities or equity.

Transactions

Economic activities or events that affect the financial position of a company and can be quantified in monetary terms.

Journal Entries

Written records of all the financial transactions of a business, which are then used to prepare financial statements.

Debits Equals Credits

A fundamental principle of accounting stating that for every transaction, the total debits must equal the total credits in a double-entry bookkeeping system.