Walmart and the Home Depot Emphasize Consistently Low Prices and Eliminate

question 143

Multiple Choice

Walmart and The Home Depot emphasize consistently low prices and eliminate most markdowns with a retail pricing strategy called

• A) low-margin pricing.
• B) value-based pricing.
• C) everyday low pricing.
• D) everyday fair pricing.
• E) markdown pricing.

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Definitions:

Productive Efficiency

A situation where goods and services are produced at the lowest possible cost and resources are utilized most effectively.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences and in a way that maximizes social welfare.

Marginal Cost

The uptick in cost associated with producing an extra unit of a product or service.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.