A Major Fruit Juice Manufacturer Failed in Its Attempt to Engage

question 112

Multiple Choice

A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers.What is a possible explanation for this failure?

• A)There was nothing to prevent the students from reselling the fruit juice to other consumers.
• B)The fruit juice manufacturer produced in a perfectly competitive market.
• C)The two groups of consumers probably have the same demand elasticity for fruit juice.
• D)The cost of producing the product is relatively high.
• E)Demand for fruit juice is probably inelastic.

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Definitions:

Used

Items that have been previously owned or utilized by someone before being sold or transferred.

Selling and Administrative Expense

Costs unrelated to direct production of goods or services, including costs associated with sales, marketing, and general administration.

Assembly Line

A production method where components are sequentially attached to an item, resulting in an efficiently completed product.

Wages

Payments made to employees based on the hours worked or tasks performed, typically on a regular basis.