Which of the Following Is True of Price Discrimination

question 69

Multiple Choice

Which of the following is true of price discrimination?

• A)It involves charging whatever the market will bear.
• B)In a competitive market,prices may have to be higher than in a market where the firm has a monopoly.
• C)It makes economic sense to charge the same prices in different countries.
• D)It exists whenever consumers in different countries are charged the same price for the same product,irrespective of variations.
• E)It cannot help a company maximize its profits.

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Definitions:

Customer Refunds Payable

Liabilities owed to customers for products or services that were sold but later returned or found unacceptable.

Perpetual Inventory

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized systems.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Cost of Goods Sold

This term refers to the direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.