As the Quantity of Different Prices Charged by a Firm

question 64

Multiple Choice

As the quantity of different prices charged by a firm ________,the amount of ________ generated increases.

• A) decreases; social welfare
• B) decreases; producer surplus
• C) increases; profit
• D) increases; deadweight loss
• E) increases; consumer surplus

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Definitions:

Gross Margin Percentage

A profitability metric that measures how much of each dollar of revenue is left after deducting the costs of goods sold.

Net Profit Margin Percentage

A financial ratio that indicates the percentage of revenue that exceeds the costs associated with making and selling products or providing services.

Book Value per Share

The value of a company calculated by dividing total shareholder equity by the number of outstanding shares.

Price-earnings Ratio

A financial metric used to evaluate the value of a company's shares by dividing the current market price of a stock by its earnings per share.