An Example of Second-Degree Price Discrimination Is

question 7

Multiple Choice

An example of second-degree price discrimination is:

• A)when you get an "early bird" discount by eating at a restaurant before 6:00 pm.
• B)when you sell something illegally to an individual through the mail.
• C)when you segment the market and charge individuals of different ages different prices for the same product or service.
• D)when you order 12 of something online and you pay less per unit than if you had bought only one.

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Definitions:

Direct Labor

Costs associated with employees who are directly involved in the production of goods or the provision of services, such as wages for factory workers.

Direct Materials

Direct materials are the raw materials that can be directly traced to the production of goods.

Variable Overhead

Expenses that fluctuate with production volume, including costs like utilities and indirect labor, that are not directly tied to specific units of production.

Absorption Costing

A costing technique that incorporates every element of manufacturing expenditure, such as direct materials, direct labor, along with variable and fixed manufacturing overheads, into the pricing of a product.