What Will Be the Result If a Retailer Sells a Substantial

question 14

Multiple Choice

What will be the result if a retailer sells a substantial volume of its product at $2.40 within a reasonable period of time after offering the same item at a $1.85 sale price for two weeks?

• A) The ordinary price will be established by the time test.
• B) It proves that the mistaken lower price was immediately corrected.
• C) An investigation by the Competition Bureau for a reviewable offence will ensue.
• D) The ordinary price will be established by the volume test.

Understand the definition and roles of the franchisor and franchisee.

Recognize the various types and examples of franchising.

Acknowledge the historical development of franchising.

Grasp the economic impact of franchised businesses, including job creation.

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Definitions:

Incremental Cost

An increase in cost between two alternatives.

Manufacturing Cost

The total cost incurred by a company to manufacture a product, including raw materials, labor, and overhead expenses.

Production Increase

An upturn in the amount of products manufactured and processed in a given period compared to a previous period.

Incremental Cost

The additional cost associated with producing one more unit of a product or service.