Price Discrimination Is Based on Observable Customer Characteristics

question 52

Multiple Choice

Price discrimination is based on observable customer characteristics

• A) When a firm can distinguish consumers with a high versus low willingness to pay
• B) When a firm offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay
• C) A monopolist knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit
• D) When a firm cannot distinguish consumers with a high versus low willingness to pay

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Definitions:

EDD

Expected Due Date, often used in project management and logistics to estimate when tasks or shipments will be completed or arrive.

Dispatching Rule

A guideline or policy used to prioritize and assign tasks or jobs in operational settings.

Flow Time

The total amount of time it takes for a unit or product to go through a production process, from start to completion.

Work-In-Process

A stage in manufacturing where materials are undergoing active processing into finished goods.