A Monopolist or an Imperfectly Competitive Firm Practices Price Discrimination

question 73

Multiple Choice

A monopolist or an imperfectly competitive firm practices price discrimination primarily to:

• A)increase profits.
• B)expand plant size.
• C)lower total costs.
• D)reduce marginal costs.

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Definitions:

Average Sale Period

The average amount of time it takes for a company to convert its inventory into sales.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell the goods, and receive cash from sales.

Average Sale Period

The average time it takes for a company to convert its inventory into sales.

Times Interest Earned

An indicator of how well a business can fulfill its debt repayments by evaluating its earnings prior to interest and taxes against its interest expenditures.