Which of the Following Products Would Most Easily Lend Itself

question 27

Multiple Choice

Which of the following products would most easily lend itself to successful price discrimination by a monopolist?

• A)cellular phones
• B)electricity
• C)pianos
• D)restaurant meals
• E)transport trucks

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Definitions:

Controllable Margin

The portion of profit or income directly influenced by the management decisions, typically excluding fixed costs.

Required Return

The minimum expected return by investors for providing capital, based on the risk of the investment.

Operating Assets

Assets used in the daily operations of a business to generate revenue, such as machinery, building, and equipment.

ROI

Return on Investment; a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.