A Major Fruit Juice Manufacturer Fails in Its Attempt to Engage

question 60

Multiple Choice

A major fruit juice manufacturer fails in its attempt to engage in price discrimination between students and all other consumers of fruit juice.Which of the following explanations is most likely to account for this failure?

• A)The students resold the juice to other consumers.
• B)The market for fruit juice was monopolistically competitive.
• C)The price elasticity of demand for fruit juice was different for each group.
• D)The cost of producing the fruit juice was extremely high.
• E)The students preferred to purchase juice from other small juice manufacturers.

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Definitions:

Quantity Sold

The total number of units of a product sold during a specific period, often used to measure business performance.

Target Return

A financial goal set for the profit or outcome from an investment or business activity.

Average Invested Capital

The mean amount of money invested in a company or project over a certain period, used to compute return on investment.

Target Profit

The projected profit a firm aims to achieve within a specific period, guiding pricing and production decisions.