Which of the Following Would Not Be Considered Price Discrimination

question 65

Multiple Choice

Which of the following would not be considered price discrimination?

• A)Long distance telephone rates are cheaper late at night.
• B)Airline fares are cheaper if you reserve several weeks in advance.
• C)The price of lettuce is 59 cents a head and two for a dollar.
• D)The price of a brand-name prescription drug is higher than the price of a generic brand.
• E)Senior citizens pay less for a movie.

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Definitions:

Operating Cycles

Operating cycles refer to the average period of time it takes for a business to convert its inventory to sales revenue and then to cash.

Profit Margins

A financial metric measuring the amount of net income generated as a percentage of revenue, reflecting the profitability of a business.

Perpetual Inventory System

A method of maintaining inventory records where updates are made continuously after each purchase or sale.

Inventory on Hand

The total quantity of goods or materials in stock at a given time within a business, available for sale or production.