Doral Division of Resorts International reported net operating profit after taxes totaling $120,000 in 2017. The cost of capital is 10.5 percent and the invested capital is $560,000. R&D incurred in 2017 was $100,000. The company's policy is to amortize intangible assets over 4 years. The income tax rate is 30 percent. How much is the company's economic value added for 2017? a. $75,825 b. $105,825 c. $825 d. $70,825

Answers

Answer 1

Economic value added (EVA) refers to a financial performance measure that indicates the amount of net operating profit that exceeds the cost of invested capital in a business.

Economic value added takes into account the opportunity cost of invested capital in the overall performance of the company.

In order to calculate the company's economic value added for 2017 we need to follow these steps:

Step 1: Calculate the Net Operating Profit After Tax (NOPAT)

NOPAT = Net Operating Profit After Taxes = $120,000.00 * (1-0.30)

= $84,000.00

Step 2: Calculate the Adjusted Operating Profit (AOP)

Adjusted Operating Profit (AOP) = NOPAT + Interest Expense

= $84,000 + ($560,000 * 10.5%)

= $144,800

Step 3: Calculate the Adjusted Tax Rate (ATR)

Adjusted Tax Rate (ATR) = Tax Rate * (1-Intangible Amortization)

= 0.30 * (1-(1/4))

= 0.225

Step 4: Calculate the Capital Charge

Capital Charge = Invested Capital * Cost of Capital

= $560,000 * 10.5%

= $58,800

Step 5: Calculate the Economic Value Added (EVA)

EVA = Adjusted Operating Profit - Capital Charge

EVA = $144,800 - $58,800

EVA = $86,000

Therefore, the economic value added for 2017 is $86,000.

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Related Questions

ways which business can overcome competition in the market environment​

Answers

Ten ways to keep ahead of the competition

Know the competition. Find out who your competitors are, what they are offering, and what their strengths and weaknesses are. ...

Know your customers. ...

Differentiate. ...

Step up your marketing. ...

Update your image. ...

Look after your existing customers. ...

Target new markets. ...

Expand your offer.

Careers in the Hospitality and Tourism career cluster are
O highly desirable and pay high wages.
O bountiful and expected to continue to grow.
O seldom desirable and pay low wages.
O limited and expected to continue to decline.

Answers

Answer:

B

Explanation:

Edge

Careers in the Hospitality and Tourism career cluster are bountiful and expected to continue to grow. Thus option B is correct.

What are Careers?

Career sectors are means of classifying various career kinds based on shared characteristics. People can use these criteria to help them focus their job options and select a suitable path.

A collection of occupations that emphasize giving people food, lodging, aid to travelers, and enjoyable activities. The abundance of jobs in the travel and hospitality career cluster is anticipated to persist.

The planning, management, and provision of lodging, dining, entertainment, conferences, and tourism, as well as related arranging and community programs including transport services, are all part of a the hospitality and tourism employment cluster. Therefore, option B is the correct option.

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Managers are responsible for helping ___ to understand and follow their company's code of ethics​

Answers

Answer:

Managers are responsible for helping employees to understand and follow their company's code of ethics​

Managers are responsible for helping employees to understand and follow their company's code of ethics.

What are a code of ethics and its importance?

It offers a common set of guidelines or expectations that everyone in the field must follow. It describes the industry's best practices. It serves as a foundation for achieving compliance with the profession's regulations. It gives the profession a legal standard.

The code of ethics outlines the company's values, standards, and expectations for ethical behavior. It is the manager's role to ensure that employees are aware of these values and understand how they relate to their job duties and responsibilities.

Managers are responsible for creating a culture of ethics within their teams and the organization as a whole. This means that they must lead by example and demonstrate ethical behavior themselves, while also holding their employees accountable for their actions.

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i. Areogram is used to send written message to

Answers

An Aerogram, Aérogramme or Air Letter is a thin lightweight piece of foldable and gummed paper for writing a letter for transit via airmail, in which the letter and envelope are one and the same. Most postal administrations forbid enclosures in these light letters, which are usually sent abroad at a preferential rate.

Which two actions will help you get the most benefit from an informational interview? a. give long answers to impress the other person with your knowledge. b. encourage the interviewer to do most of the talking during the interview. c. make negative comments about other companies. d. show your willingness to accept any job. e. speak with confidence, but be yourself.

Answers

The two actions that will help you get the most benefit from an informational interview are Encourage the interviewer to do most of the talking during the interview and Speak with confidence, but be yourself

What are the  two actions will help you get the most benefit from an informational interview

Encourage the interviewer to do most of the talking during the interview . This will allow you to gather as much information as possible about the industry or field, the company, and the interviewer's experiences and insights.

Speak with confidence, but be yourself. This will help you establish a rapport with the interviewer and make a positive impression, while also allowing you to showcase your personality and communication skills.

The other options, such as giving long answers to impress the other person with your knowledge, making negative comments about other companies, or showing your willingness to accept any job, are not effective strategies for getting the most benefit from an informational interview.

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kroger creating this app for the purpose of differentiating the company from its competitors is a result of what type of competitive structure?

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The creation of an app by Kruger to differentiate the company from competitors is called the Monopolistically competitive structure.

What is the Monopolistically competitive structure?

When a large number of businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition exists. A monopolistic competitive industry has minimal entry requirements, and decisions made by any one firm do not immediately affect those of its rivals.

A market with monopolistic competition has numerous vendors of the same commodity, but each seller's product is in some sense distinct from the products of the other sellers. The term "monopolistically competitive structure" therefore refers to Kruger's development of an app to set the business apart from rivals.

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"A new client with no other investment assets has just come into an inheritance of $500,000 of ABCD stock, a blue chip company listed on the NYSE. As the adviser to this customer, your IMMEDIATE concern should be:"

Answers

Answer:

lack of diversification in the client's account

Explanation:

As a brokerage firm, your immediate concern in this situation should be the lack of diversification in the client's account.  This is an incredibly large amount of money and the client has 100% of it invested in a single stock. Seeing since it is a blue-chip company, chances of it being delisted or its price falling sharply are very low but still possible. Still having all your money in a single asset is extremely risky, and every client should be diversified in many assets in order to reduce the portfolio's overall risk.

if a country with a fixed exchange rate is expected to devalue its exchange rate, what market pressure might force devaluation?

Answers

If a country with a fixed exchange rate is expected to devalue its exchange rate, market pressure might force devaluation through several factors. Firstly, if the country is running a trade deficit, it means that it is importing more than it is exporting.

This puts pressure on the country's currency, and investors may start to sell the currency, causing a decrease in demand and a devaluation of the exchange rate. Secondly, if there is political instability or uncertainty, investors may lose confidence in the country's economy and sell the currency, leading to a devaluation.

Additionally, if the country's central bank is low on foreign currency reserves, it may not be able to maintain the fixed exchange rate and may be forced to devalue. Finally, if there is a global economic downturn, investors may prefer safe-haven currencies such as the US dollar, leading to a devaluation of the country's currency.

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what is the housekeeping department in the hospital industry​

Answers

Answer:

Housekeeping refers to the general cleaning of hospitals and clinics, including the floors, walls, and certain types of equipment, tables and other surfaces. The purpose of general housekeeping is to: reduce the number of microorganisms that may come in contact with patients, visitors, staff and the community.

Write a paragraph in no more then 100 words. Do you think it's right to let animals work for human ?​

Answers

Answer:

Animal rights is the philosophy according to which some, or all, animals are entitled to the possession of their own existence and that their most basic interests—such as the need to avoid suffering—should be afforded the same consideration as similar interests of human beings.That is, some species of animals haveOn the one hand, a group of people believe that mankind does not have the rights to exploit animals, as they are also living creatures. It is true that animals live by following their instinct, but they have the same feeling as human beings, therefore it would not be fair for mankind to exploit them. In several cases, it has been reported that some of the cows had cried before they were slaughtered in the slaughterhouse, which means that they also had the same feeling as human beings. In another reported cases, some of the animals was treated poorly by their masters, though they had been exploited heavily and made them sick or injured. the right to be treated as individuals, with their own desires and needs, rather than as unfeeling property.

Explanation:

it has become a debatable topic about the exploitation of animals by mankind. Some people believed that animals should not be exploited and should be treated fairly by human beings. In contrast, others think animals should be utilised to assist humans in various kinds of ways, such as the source of food or for medical testing. The following essay will discuss both views in details, but in my opinion, I believe that animals can be used as the source of food or to assist human beings in the proportionate way and human should treat them properly.

Answer: pls gib me brainliest :c ty

Explanation:

I think it is not okay for animals to work for humans as humans tend to have a nature of enforcement and want more than others so we would probably enslave them. We already torcher animals by keeping them so close do you think they need more? Although humans do need to eat and animals are a good source of protein. And giving animals more space would result in more wasted space so there really is no win-win situation. Enslaving animals would be wrong we need to respect animals as they help us enjoy our lives and food.

Assignment 2R: Customers, Inventory, and Safety Instructions

Answers

The three ways which most company uses to create a brand promise are through its:

Product Design and InnovationUser ExperienceCustomer Service.

Description of ways that the company uses to create that brand promise:

One well-known company that has a strong brand promise is Apple Inc. Apple's brand promise is centered around delivering innovative, high-quality products and services that offer a seamless, intuitive, and stylish user experience. The company aims to provide its customers with products that simplify their lives and enhance their ability to connect and express themselves in new and exciting ways.

Here are three ways that Apple creates and upholds this brand promise:

Product Design and Innovation: Apple is known for its sleek and stylish product designs, as well as its innovative approach to technology. The company invests heavily in research and development to bring new and exciting products to market, such as the iPhone, iPad, and MacBook.User Experience: Apple places a strong emphasis on the user experience. All of its products are designed to be easy to use, intuitive, and seamless. The company also offers a wide range of services, such as Apple Music, the App Store, and Apple Pay, that enhance the overall user experience.Customer Service: Apple has a reputation for providing exceptional customer service. The company operates a large network of retail stores that offer hands-on support and repair services, as well as a robust online support center. Apple also offers a warranty program that covers its products for a specified period of time, giving customers peace of mind.

By consistently delivering on its brand promise, Apple has built a loyal customer base and a strong reputation as a company that provides innovative and high-quality products and services.

Missing words "You learned about customers, inventory, and safety. Now, you'll apply what youlearned.1. Choose a well-known company, and describe its brand promise. Describe at leastthree ways that the company uses to create that brand promise".

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.A car salesman earns a 7% commission on the price of any car he sells. If he earns $620 on the sale of a car, then he sold the car for a price of $________. Hint: Round to the nearest cent as needed.
**HELP, WILL MARK BRAINLIEST**

Answers

Answer: $8,857.14

Explanation: $620/.07= $8,857.14

On January 1, Year 1, Purl Corp. purchased as a long-term investment $500,000 face amount of Shaw, Inc.’s 8% bonds for $456,200. The bonds were purchased to yield 10% interest. The bonds mature on January 1, Year 6, and pay interest annually on January 1. Purl uses the effective interest method of amortization. What amount (rounded to nearest $100) should Purl report on its December 31, Year 2, balance sheet for these held-to-maturity bonds?

Answers

Answer:

Investment in bonds $468,000

Explanation:

In this case, the journal entry to record the purchase of the bonds should be:

January 1, Year 1, bonds purchased as long term investment

Dr Investment in bonds 456,200

    Cr Cash 456,200

In the balance sheet it would be reported as an asset: Investment in bonds $456,200

amortization of bond discount for first coupon = ($456,200 x 10%) - ($500,000 x 8%) = $45,620 - $40,000 = $5,620

journal entry to record first coupon payment:

January 1, Year 2, first coupon payment collected

Dr Cash 40,000

Dr Investment in bonds 5,620

    Cr Interest revenue 45,620

So the investment in bonds account now has a $461,820 balance

amortization of bond discount for second coupon = ($461,820 x 10%) - ($500,000 x 8%) = $46,182 - $40,000 = $6,182

journal entry to record second coupon payment:

January 1, Year 3, second coupon payment collected

Dr Cash 40,000

Dr Investment in bonds 6,182

    Cr Interest revenue 46,182

So the investment in bonds account now has a $468,002 balance

Since we are told to report the December 31, Year 2, balance, the accrued interest journal entry should be:

Dr Interest receivable 40,000

Dr Investment in bonds 6,182

    Cr Interest revenue 46,182

The account balance is the same though, $468,002 rounded down to $468,000

prepare the adjusting journal entries necessary to
determine the adjusted cash balance per books.
Concord Wyatt is unable to reconcile the bank balance at January 31. Concord's reconciliation is as follows.

Answers

Adjusting Journal Entries 1. Debit: Bank Service Charges credit: Cash record any bank service charges not yet reflected in the books, reducing the cash balance.

2. Debit: Outstanding Checks

  Credit: Cash

 Record any outstanding checks issued but not yet cleared by the bank, reducing the cash balance.

3. Debit: Deposits in Transit

  Credit: Cash

 Record any deposits made but not yet recorded by the bank, increasing the cash balance.

4. Debit: NSF (Non-Sufficient Funds) Checks

  Credit: Accounts Receivable

Record any bounced checks from customers, reducing the cash balance and increasing the accounts receivable.

To determine the adjusted cash balance per books, several adjusting journal entries need to be made. Bank service charges should be debited, reducing the cash balance. Outstanding checks that have not yet cleared the bank need to be debited, decreasing the cash balance. Deposits in transit, which have been made but not recorded by the bank, should be debited, increasing the cash balance. Lastly, any NSF checks received should be debited to reduce the cash balance and increase the accounts receivable.

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. For each action, write YES or NO for whether it will likely decrease your credit score:
a. You request a copy of your credit report
b. You open 5 new credit cards in one month
c. You are 3 months late paying your student loan bill
d. You lose your job, & it takes 4 months to find a new one

Answers

a. Requesting a copy of your credit report - NO
b. Opening 5 new credit cards in one month - YES
c. Being 3 months late paying your student loan bill - YES
d. Losing your job and taking 4 months to find a new one - YES (if you're late on payments as a result)

What the the importance of modernization in business? ​

Answers

Answer:

6 Key Reasons Why Business Modernization Is Important

It's about improving the customer experience and engaging with your shoppers on a deeper level. It improves efficiency, add convenience, grows communication, increases customer outreach, builds more security, and expands marketing channels.

the strategy of investors who are attempting a leveraged buyout is to:

Answers

The strategy of investors who are attempting a leveraged buyout is to acquire a company using a significant amount of borrowed money, typically through a combination of debt and equity financing.

In a leveraged buyout (LBO), investors aim to take control of a target company by using borrowed funds to finance a large portion of the acquisition cost. The investors contribute a smaller amount of their own capital, while the rest of the purchase price is covered by debt. This strategy allows investors to amplify their potential returns by using leverage, as they expect that the acquired company's future cash flows will be sufficient to repay the debt and generate a profit.

LBOs are often pursued when investors believe they can improve the target company's financial performance or extract value through various means, such as cost-cutting measures, operational improvements, or restructuring. By taking advantage of the company's assets, cash flows, or growth potential, investors aim to enhance its value and generate a higher return on their investment.


The strategy of investors in a leveraged buyout involves using borrowed funds to acquire a company, with the expectation of improving its performance and generating a higher return on investment. By employing leverage and implementing value-enhancing measures, investors seek to capitalize on the target company's potential and maximize their profits

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A company accumulates sales receipts and remits them to the credit card company for payment. When are the credit card expenses recorded? When are these expenses incurred?

Answers

Credit card expenses are recorded at the time of sales when customers make purchases using credit cards. These expenses are incurred when the company remits the sales receipts to the credit card company for payment.

Credit card expenses are recorded at the time of sales because they represent fees or charges imposed by the credit card company for processing the transactions. When customers make purchases using credit cards, the company recognizes the sales revenue and simultaneously records the corresponding credit card expenses as a deduction from the revenue.

However, the actual payment of credit card expenses occurs when the company remits the sales receipts to the credit card company for payment. Typically, the company accumulates the sales receipts for a certain period, such as a week or a month, before remitting them to the credit card company. At that time, the company settles its obligations and pays the credit card expenses based on the sales volume.

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Click this link to view O*NET’s Work Styles section for Tellers. Note that common work styles are listed toward the top and less common work styles are listed toward the bottom. According to O*NET, what are common work styles needed by Tellers? Select four options.
curiosity
integrity
dependability
attention to detail
creativity
cooperation

Answers

The common work styles needed by Tellers, given O*NET’s Work Styles section for Tellers include:

integritydependabilityattention to detailcooperation

What work styles are needed by tellers ?

They must be cordial, accommodating, and patient. They must be able to comprehend client requirements and communicate service possibilities to clients. attention to detail When handling customers' money, tellers must take care to avoid mistakes.

Integrity. Being ethical and honest is required for work. Dependability. Fulfilling duties and being dependable, responsible, and dependable are requirements of the job. Focus on the details. A job needs attention to detail and thoroughness in task completion.

Self-Control. Even under extremely challenging conditions, the job calls for maintaining composure, managing emotions, regulating rage, and refraining from aggressive actions. Cooperation. It is necessary for the job that you get along well with coworkers and have a cooperative, positive attitude.

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Asking probing questions throughout an interview to find out what the applicant is like is called a/an:

Answers

The process of asking probing questions throughout an interview to find out what the applicant is part of an hiring process called Interviewing.

What is hiring process?

An hiring process is also called recruitment process because its entails the process of choosing the quailified candidate out of total population/

In conclusion, the process of asking probing questions throughout an interview to find out what the applicant is part of an hiring process called Interviewing.

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Do you think Lance is right to be concerned about Leroy's plan for growth? Justify your answer.

Answers

Lance is right to be concerned about Leroy's plan for growth. Leroy's plan is not feasible, and Lance should communicate his concerns with Leroy.

Lance must convey his concerns to Leroy to assist him in developing a more feasible growth strategy. Leroy's plan is to double the size of his business within a year. It is a commendable goal, but the approach he has outlined is not feasible. Leroy is unable to raise the capital required for this growth strategy. He does not have the required cash reserves to finance the expansion, and acquiring the financing required for the expansion could result in high-interest rates. Leroy is also not ready to scale up his business.

He has inadequate staff and no systems or processes in place to ensure the smooth functioning of the business. He will need to employ more people, and he must have systems in place to manage these new employees effectively. Moreover, the market may not be ready for the company's growth. The company's sales growth may slow, leading to a decline in revenue. Leroy must do market research before scaling up his business. Lance should discuss all of these issues with Leroy and advise him on what to do next.

To summarize, Lance is justified in being concerned about Leroy's growth plan. It is critical for Leroy to recognize that scaling up his business would necessitate more than simply doubling its size. Leroy must reassess his goals and come up with a more realistic plan for growth.

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The fixed costs of a business are $300,000 per
year and variable costs are $2.00 per unit. The
business sells 200,000 units per year at a selling
price of $5.00. The profit made per year is:

O $300,000
O $1,000,000
O $600,000
O $1,500,000​

Answers

Answer:

$300,000

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which of the following commodities is a product of the primary or extractive industry

A. Cars
B. Gold
C. Hair Processing
D . Houses ​

Answers

Answer is going to be B. Gold

2. A small business makes cakes for parties and weddings. Which two of the following are most likely to be resources it uses directly in production? Select two of the following.
A. Labour
B. Taxes
C. Television adverts
D. Flour
E. Airfreight

Answers

D and A.

The reasoning is because if they are making a cake then they may use flour, and they may have to clean up their mess afterwards.

The qualities needed for effective leadership are the same as those needed to be an effective follower. Group of answer choices True False

Answers

It is true that the qualities needed for effective leadership are the same as those needed to be an effective follower.

Who is a leader?

A leader is someone who gets things done through others. A leader rely on his or her followers to be able to achieve an organizational' s goals and objectives.

For a leader to be able to deliver effectively, he or she must have followers who have similar goals and must be effective as well.

Hence, it is true that the qualities needed for effective leadership are the same as those needed to be an effective follower.

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Marketing can best be thought of as a(n)?

Answers

Complete Question:

Marketing can best be thought of as a(n)

Group of answer choices

A. profit

B. activity

C. need

D. process

Answer:

D. Process.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers

Hence, marketing can best be thought of as a process.

Generally, marketing comprises of various activities such as creating, communicating, delivering, and exchange of goods and services for a specific amount of money being paid by the customers.

which one of the following financial statements is prepared as of a particular date as opposed to providing information covering a specific time period (e.g., one month)?

Answers

The financial statement that is prepared as of a particular date, rather than covering a specific time period, is the Balance Sheet.

The Balance Sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, usually the end of a reporting period, such as the end of a month, quarter, or year. It presents a summary of a company's assets, liabilities, and shareholders' equity.

Unlike the Income Statement or Statement of Cash Flows, which cover a specific time period and show the company's performance or cash flows over that period, the Balance Sheet focuses on the company's financial position at a given moment. It provides information about what the company owns (assets), what it owes (liabilities), and the residual value available to shareholders (shareholders' equity) at that specific date.

By examining the Balance Sheet, investors, creditors, and other stakeholders can assess the company's liquidity, solvency, and overall financial health. It helps them understand the company's ability to meet its short-term and long-term obligations, the composition of its assets, and its capital structure.

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John F. Kennedy believed that a leader should be _____. A. elected B. successful C. a lifelong student D. in the military

Answers

John F. Kennedy believed that a leader should be successful .

He believes that as one is been elected by the people to be their leader, one should have a passionate vision to be successful. Option  b  

What was John F. Kennedy Values for a  Successful  Leadership

John F. Kennedy has  set series of Values and Rules, that can lead us and give us the insight on how to be a Successful leader.

John F. Kennedy,  as the President of the United States, was a high level Charismatic Leader and sets of  Values that should mold any Successful Leader which are

The leader should be able to  guide and  identify the way forward for a better future.A leader should be able to set a high standards what is doing what is need to done at the right time and doing them well.Set high goals and fixed your targetExpress your convictions of value and stick to them.Fight for freedom, rights for the people. Resolve differences.  Create a better future.appreciate others for their contribution.

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Which tool help monitor the ongoing performance of the platform in enterprise platform?

Answers

Users can track and monitor the performance of corporate platforms or web apps using scalability and performance monitoring (APM) solutions, which enables them to find and fix any potential performance problems.

Which business platform procedure oversees all interactions with vendors?

For a retail client, the experience enterprise platform process communicates with vendors and oversees the whole supply chain. SAP introduces a combined product to assist major businesses in gaining new value through cloud services and company transformation.

What exactly is an enterprise platform platform?

In order to produce business solutions or apps, a group of integrated software products and/or systems that share data are referred to as enterprise business platforms.

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The purpose of charging different prices to different groups of customers is to:.

Answers

The purpose of charging different prices to different groups of customers is to earn maximum profits.

What is price discrimination?

Price discrimination is when the same product is sold at different prices to customers in different markets.

Types of price discrimination

1. First degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. Second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.

3. Third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students.

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