Internet Service Providers Such as Comcast Are Able to Price

question 16

Multiple Choice

Internet service providers such as Comcast are able to price discriminate easily for many reasons.Which of the following is a reason for them to price discriminate?

• A) They offer better services than the competition.
• B) They can easily identify new customers from old customers.
• C) They let the customers choose from different packages based on income.
• D) There are many competitors providing Internet services.
• E) Some companies offer additional services such as cable and phone.

---

Definitions:

Direct Labour Hours

The total hours worked by employees that are directly involved in the production process.

Factory Overhead Rate

A calculation used to assign manufacturing overhead costs to individual units of production, based on a certain activity base.

Flexible Budget

A budget that adjusts to changes in the volume of activity, allowing for better comparison with actual costs.

Direct Labour Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process of a product.