Suppose Amazon

question 52

Multiple Choice

Suppose Amazon.com were to charge each consumer a different price,according to his or her willingness to pay for the latest novel in the Twilight series.The firm would be engaging in:

• A)peak-load pricing.
• B)first-degree price discrimination.
• C)second-degree price discrimination.
• D)third-degree price discrimination.

---

Definitions:

Compounded Quarterly

A method of calculating interest where the accumulated interest is added to the principal sum every three months, leading to interest earnings on interest.

Interest

A fee for the benefit of loaning money, usually stated as a yearly interest rate.

Payments

These are amounts paid or to be paid by one party to another in exchange for goods or services or as repayment of a loan.

Compounded Quarterly

Interest on an investment that is calculated four times a year.