Which of the Following Is Least Likely to Be Considered

question 94

Multiple Choice

Which of the following is least likely to be considered an infinite customer population?

• A) subassemblies in a just-in-time manufacturing environment
• B) customers in an amusement park
• C) a class of 500 students who might visit their professor during office hours
• D) customers in a grocery store
• E) cars taking Exit 76 off of a freeway during rush hour

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Definitions:

Price Discrimination

An approach to pricing in which a single provider sells almost identical goods or services at varying prices across different markets.

Consumer Surplus

The variance between what consumers are prepared and can afford to pay for a product or service and the actual amount they end up paying.

Marginal Cost

The additional cost incurred from producing one more unit of a product or service.

Two-part Tariff

A pricing strategy that involves a fixed fee in addition to a variable charge for each unit of the product consumed.