If a Firm Is Able to Convert Every Dollar of Consumer

question 203

Multiple Choice

If a firm is able to convert every dollar of consumer surplus to economic profit,the firm has achieved

• A) discrimination among units of a good.
• B) discrimination between groups of buyers.
• C) perfect price discrimination.
• D) perfect cost minimization.
• E) the normal amount of economic profit.

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Definitions:

Company Profitability

A measure of how effectively a company generates profit from its operations, often assessed through ratios such as net margin.

Quality Circles

Small groups of employees who meet regularly to discuss and propose solutions to workplace problems, aiming to improve organizational performance and work environment.

Gainsharing Programs

Employee incentive plans that provide a share of the company’s profits based on performance metrics.

Scientific Management

A management theory developed by F.W. Taylor aiming at improving economic efficiency and labor productivity through systematic study of work methods and processes.