Because the Cost Driver Is the Same for the Fringe

question 5

True/False

Because the cost driver is the same for the fringe benefits of life insurance and pension benefits cost is the same, those costs can be aggregated into one homogeneous cost pool.

---

Definitions:

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, based on their willingness or ability to pay.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and capable of spending for a product or service, and the total sum they end up paying.

Single-price Monopoly

a market structure where a monopolist sells a product or service at a single price to all consumers, with no price discrimination.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider to different consumers.