A Company Has Marked Its Refrigerators at $729

question 71

Multiple Choice

A company has marked its refrigerators at $729.94 as the original price.The sales price has been marked at $650.99.Because the customer compares the sales price with the original price, he identifies an increased value.This is an example of:

• A)everyday low pricing.
• B)external reference price.
• C)high/low pricing.
• D)market penetration pricing.
• E)internal reference price.

---

Definitions:

Economic Costs

The total expenses incurred in production, including both explicit costs like wages and implicit costs such as opportunity costs.

Total Revenue

Total Revenue refers to the total receipts from sales of goods or services.

Economic Profit

The profit a business makes after deducting both its explicit and implicit costs, including opportunity costs.

Normal Rate of Return

The standard profit or return that is anticipated on an investment, considering the levels of risk and market conditions.