Which of the Following Is (Are) True

question 165

Multiple Choice

Which of the following is (are) true?

• A) Every instance of firms charging different prices is price discrimination.
• B) Different prices may reflect different costs.
• C) Price differentials based on differences in production costs are examples of price discrimination.
• D) B and C are true.

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Definitions:

Poor Performing Funds

Funds that consistently generate returns below their benchmark or peer group averages over a specified period.

Category

A classification or grouping based on common characteristics or types, used to organize items or concepts for easier analysis and comparison.

Funds

Financial resources set aside for a specific purpose or investment vehicle pooling investors’ capital for the purpose of investing in securities and other assets.

Abnormal Return

Returns on a security that differ from the expected rate of return, often adjusted for risk.