Price Discrimination Exists When

question 293

Multiple Choice

Price discrimination exists when

• A) a firm charges different buyers different prices for its product but the costs are the same.
• B) each buyer is treated equally.
• C) sales are made below cost.
• D) a firm charges each buyer a price of the product in proportion to its costs.

---

Definitions:

Cyclical Items

Goods or services whose demand fluctuates in a predictable pattern over time due to seasonal, economic, or other cyclic factors.

ABC Analysis

A methodology for classifying inventory items based on their importance, where A items are most valuable, followed by B and then C, to prioritize inventory management efforts.

Annual Units

The quantity of items produced or sold by a company in one year.

Quantities Used

The amounts of materials or resources consumed during the production of goods or services.