Pharmaceuticals with High Fixed Costs Can Benefit with the Practice

question 124

Multiple Choice

Pharmaceuticals with high fixed costs can benefit with the practice of price discrimination because:

• A) high fixed costs create incentive for pharmaceuticals to sell more.
• B) charging different prices to different customers generates different levels of fixed costs.
• C) profit from customers paying high prices allows pharmaceuticals to cover part of the fixed costs.
• D) extra profit from customers paying low prices allows pharmaceuticals to cover part of the fixed costs.

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Definitions:

Lesbians

Females who experience romantic and sexual desires for other females.

Heterosexuals

Individuals who are sexually attracted to members of the opposite sex.

Social Stigma

The disapproval or discrimination against a person or group based on perceivable social characteristics that serve to distinguish them from other members of a society.

Fatness

A colloquial term often used to describe excess body weight or adiposity, which can carry derogatory connotations.