All for Fun Is a Retail Store That Offers a Variety

question 165

Multiple Choice

All for Fun is a retail store that offers a variety of board games, magic cards, and other collectible items and caters to teens and adults who enjoy strategy-based games. The store has over 20,000 magic cards and utilizes a sophisticated computer system to identify the value of each card. All for Fun determines the rarity of a given card and adjusts prices according to how much money customers are likely to pay for a particular card. Cards that are in limited production or considered "rare" are more expensive than cards that are widely available. Thus, the price for a single magic card might vary between $25 and $50 or more per card depending on the market. What type of pricing is All for Fun utilizing?

• A) Demand-based pricing
• B) Markup pricing
• C) Cost-plus pricing
• D) Competition-based pricing

---

Definitions:

Final Product

A good or service that has completed the production process and is available for sale to the end consumer.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, such as labor or capital.

Employment

Refers to the condition of having a paid job or being engaged in an activity that generates income.