When Different Prices Are Charged at Different Times to Reduce

question 41

Multiple Choice

When different prices are charged at different times to reduce capacity restraints (e.g.toll charges on the Sydney Harbour bridge are higher during peak hour) ,this is known as:

• A)peak-load pricing
• B)price skimming
• C)penetration pricing
• D)price discrimination

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Definitions:

Dollar Sales

The total revenue generated from the sale of goods or services, calculated in dollar terms.

Break-Even

A financial situation in a business where the income equals the costs, leading to neither profit nor loss.

Monthly

Pertaining to something that occurs, is calculated, or reported every month.

Variable Expense

An expense that changes in proportion to production output or sales.