If a Company Decides to Divide Its Market Area into Segments

question 148

Multiple Choice

If a company decides to divide its market area into segments or regions and charge a flat rate for freight to all customers in a given region,the company is using _____ pricing.

• A) zone
• B) uniform delivered
• C) freight absorption
• D) FOB origin
• E) basing-point

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Definitions:

Importer or Exporter

A person or company that brings goods into (importer) or sells goods to other countries (exporter) as part of international trade.

Equilibrium Price

The cost at which the amount of a product or service sought after is equal to the amount available, leading to equilibrium in the market.

Equilibrium Quantity

The quantity of goods or services demanded equals the quantity supplied at the market price.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable.