Which of the Following Is an Example of Price Discrimination

question 77

Multiple Choice

Which of the following is an example of price discrimination?

• A)Both Andy and Beth pay $7 for a ticket to the same movie,although the show timings are different.
• B)Ann purchases a coach ticket on an airline for $250 while Bill purchases a first class ticket on the same flight for $900.
• C)Aaron purchases a hardback copy of Harry Potter and the Deathly Hallows for $25 while Barbara waits and purchases a copy of the same book six months later for $8.
• D)Audrey buys a front-row seat at a concert with back-stage access for $1,200,while Ben pays $500 for seats further away from the stage.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Margin

The difference between the selling price of a product and the cost of the product, representing profitability.

Sales

The total revenue earned from the sale of goods or services related to a company's primary operations.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as value-added time divided by the total cycle time.