Which of the Following Is Not an Example of Price

question 196

Multiple Choice

Which of the following is not an example of price discrimination?

• A)Adobe Systems offers software at discounted prices to students and faculty at K-12 and university levels.
• B)Unlike foreign tourists, citizens of Cambodia are exempted from paying an admission fee to the temples of Angkor.
• C)Senior citizens may purchase special fare tickets for public transportation that are not available to others.
• D)Buyers at an automotive parts store receive a discount for bulk buying because the store is able to pass on to its customers some of the lower average cost for producing large quantities.

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Definitions:

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Expenses

Costs that change in proportion to the activity or volume of production in a business.

Variable Expense Ratio

The proportion of variable expenses to total sales, indicating how variable costs change with changes in sales volume.