Which Is True of Price Discrimination

question 68

Multiple Choice

Which is true of price discrimination?

• A) Successful price discrimination will provide the firm with lower total profits than if it did not discriminate.
• B) Successful price discrimination will provide the firm with more profit than if it did not discriminate.
• C) Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly.
• D) It exists when price differences depend critically on differences in the costs of production of serving different groups of buyers.

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Definitions:

Financial Statement Analysis

The process of examining and analyzing a company's financial statements to make better economic decisions.

External Users

Individuals or entities outside a company, such as investors or creditors, who rely on company financial information to make decisions.

Internal Users

Individuals within an organization who use accounting information for decision-making, including managers and employees.

Days' Sales Uncollected

A financial metric indicating the average number of days it takes a company to collect payment after a sale has been made, used as an indicator of the efficiency of a company's credit and collection policies.