Which of the Following Is a Real Example of Price

question 246

Multiple Choice

Which of the following is a real example of price discrimination?

• A) Airlines set different prices for business people and vacationers.
• B) Publishers charge high prices on hardback and low price on paperback books.
• C) IBM's regular version of a printer that prints at 10 pages per minute is more expensive than the Series E that prints five pages per minute.
• D) All of these examples are real.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner for easy understanding.

Corporation

A legal entity recognized by law as separate from its owners, with the ability to own assets, incur liabilities, and sell shares.

Retained Earnings

Accumulated net income that a company has not distributed to its shareholders as dividends, reinvested in the business.

Dividends

Payments made by a corporation to its shareholder members, typically derived from profit.