Customary Pricing Refers to

question 147

Multiple Choice

Customary pricing refers to

• A) a pricing method where the price the seller quotes includes all transportation costs.
• B) setting the same price for similar customers who buy the same product and quantities under the same conditions.
• C) deliberately selling a product below its list price to attract attention to it.
• D) using a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.
• E) pricing based on what the market will bear.

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Definitions:

Economic Efficiency

Economic efficiency occurs when all resources are allocated optimally to serve each individual or entity in the best way while minimizing waste and inefficiency.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can dictate prices.

External Benefit

A benefit that an activity or transaction provides which is not captured by the consumer or producer, benefiting others in society.

Public Good

A product or service that is made available to all members of a society, typically funded by the government, and characterized by non-excludability and non-rivalry.