The ________ Effect Occurs When the Market Price Either Decreases

question 137

Multiple Choice

The ________ effect occurs when the market price either decreases or increases by the respective entrance or exit of a rival firm in the market.

• A) competitive
• B) price
• C) output
• D) market
• E) oligopoly

Understand the concepts of markup, maintained markup, and markdown in retail pricing strategies.

Identify and explain the components of the retailing mix and their relevance to retail management.

Grasp the retail positioning matrix, including its dimensions and strategic implications.

Recognize the difference between original markup and maintained markup through practical examples.

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Definitions:

Total Quantity

The overall amount or volume of a product or resource available or produced.

Unit of Output

The measurement of what is produced or accomplished within a given timeframe or per cycle of operation, typically associated with productivity.

Entrepreneurial Ability

The human resource that combines the other economic resources of land, labor, and capital to produce new products or make innovations in the production of existing products; provided by entrepreneurs.

Economic Profit

The surplus remaining after subtracting total costs, including both explicit and implicit costs, from total revenues, indicating the profitability of a business beyond breaking even.