The Decision of Macy's to Use Even Prices Such as $60

question 182

Multiple Choice

The decision of Macy's to use even prices such as $60 for a Ralph Lauren Polo is an application of ____, where ____ prices are often used to _____.

• A) odd-even pricing; even; give a product an upscale or exclusive image
• B) odd-even pricing; odd; show customers products are priced based on tradition
• C) prestige; premium; give a product an upscale or exclusive image
• D) prestige; even; make it easier for consumers to compare
• E) odd-even; even; facilitate comparison to competitors' prices

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Definitions:

Business Form

The legal structure or organization of a business, such as sole proprietorship, partnership, corporation, or limited liability company (LLC).

S Corporation

A designation for a corporation that meets specific Internal Revenue Service criteria, allowing it to be taxed as a pass-through entity, thereby avoiding the double taxation typically applied to corporations.

Purported Partnership

The appearance of partnership when there is no partnership; it arises when a person misleads a second person into believing that the first person is a partner of a third person; a theory that allows the second person to recover from the first person all reasonable damages the second person has suffered due to his reliance on the appearance of partnership.

Constructive Partnership

A legal concept where a partnership is deemed to exist based on the actions or conduct of the parties, despite there being no formal agreement.