Which of the Following Methods Ranks Individual Products in a Bundle

question 89

Multiple Choice

Which of the following methods ranks individual products in a bundle for revenue allocation?

• A) stand-alone revenue-allocation method
• B) incremental revenue-allocation method
• C) unit-cost weighting method
• D) physical-unit weighting method

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved.

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.