At Ben's college, the local Dunkin' Donuts gives a 10 percent discount to students. Is this price discrimination? Why or why not?
What will be an ideal response?
When firms sell the same product to different resellers (wholesalers, distributors, or retailers) at different prices, it can be considered price discrimination; usually, larger firms receive lower prices. This does not apply to end customers, however, so giving a discount to students is not price discrimination.
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On July 1, 2017, Rectangle, Inc purchased Diamond Company's five-year 12% bonds with a face value of $500,000 for $569,000, which included $25,000 of accrued interest. The bonds, which mature on February 1, 2022, are to be held-to-maturity and pay interest on February 1 and August 1. Rectangle uses the straight-line method of amortization. The amount of income that Rectangle would report for the
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Consider Figure 5.1. Suppose instead that the Mexican government provides a subsidy of $200 per ton to its steel producers, as indicated by the supply schedule SM (with subsidy). As a result of the subsidy, the welfare loss to Mexico due to inefficient domestic production equals
a. $200. b. $400. c. $600. d. $800.
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A) internal B) revenue C) thematic D) happenings E) process
The international structural stages model suggests that a typical evolutional path for an international company's structure would be
A. from international division to worldwide product division to geographical area division. B. from geographical area division to worldwide product division to global matrix. C. from international division to geographical area division to worldwide product division. D. from functional division to horizontal company to virtual corporation. E. from international division to worldwide product division to global matrix.