Which of the Following Is Not an Example of Price

question 216

Multiple Choice

Which of the following is not an example of price discrimination?

• A)A movie theater charges a lower price for a child's ticket than for an adult's ticket.
• B)A university rebates part of the cost of tuition in the form of financial aid for needy students.
• C)A local pizza chain offers a "buy three get one free" deal.
• D)An ice cream parlor charges a higher price for ice cream than for sherbet.

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Definitions:

Selling Price Per Unit

The amount of money charged to the customer for one unit of a product or service.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Break-Even Point

The point at which total revenues equal total costs, indicating no profit or loss.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no net loss or gain.