Which of the Following Does Not Arise from Price Discrimination

question 12

Multiple Choice

Which of the following does not arise from price discrimination?

• A)an increase in producer surplus
• B)an increase in consumer surplus
• C)an increase in quantity sold
• D)an increase in profits

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Investing Activity

Transactions involving the purchase or sale of long-term assets and other investments not included in cash equivalents.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring the efficiency of asset use.

Leverages

The use of borrowed money (debt) in addition to equity in the investment to finance the purchase of assets and increase the potential return on investment.