The Practice of Charging Different Prices to Different Groups of Consumers

question 46

Multiple Choice

The practice of charging different prices to different groups of consumers is called _____

• A)price segregation.
• B)price discrimination.
• C)rent seeking.
• D)economies of scale.
• E)economies of scope.

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Definitions:

Time Periods

Distinct intervals of time used for financial analysis, planning, and accounting, can range from short-term to long-term durations.

Future Value

The estimated amount of money an investment is expected to be worth in the future, taking into account a specified rate of interest or growth.

Annuity Due

A type of annuity in which payments are made at the beginning of each period, typically used in leases and rental agreements, resulting in higher present value compared to ordinary annuities.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, frequently used in the evaluation of investment opportunities.