Which of the Following Is an Example of Customer Discrimination

question 379

Multiple Choice

Which of the following is an example of customer discrimination?

• A)European soccer players earn more than U.S. soccer players since soccer is more popular in Europe.
• B)Male basketball players in the NBA earn higher salaries than female basketball players in the WNBA since viewers prefer watching NBA games.
• C)Golfers on the men's PGA tour earn more than golfers on the women's LPGA tour since people prefer watching the men play golf.
• D)All of the above are examples of customer discrimination.

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Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price within a specified time period.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a set time period.

Fixed Price

A set price for a product or service that does not change under normal conditions.

Derivative Security

A financial instrument whose value is based on an underlying asset, index, or other financial instruments.