It Is Important to Ensure That the Final Price to the Customer

question 48

Multiple Choice

It is important to ensure that the final price to the customer or end user is tolerable, given all the mark-ups along the value chain. This is called ____. ​

• A)premium pricing
• B)price skimming
• C)product bundle pricing
• D)captive pricing
• E)demand-based pricing ​

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Definitions:

Equilibrium Price

The price at which the quantity of goods suppliers are willing to sell equals the quantity of goods consumers are willing to buy, leading to market balance.

Competitive Labor Market

A market where numerous employers and employees interact, leading to wage determination by supply and demand with minimal intervention.

Shirking

is the behavior of avoiding or evading work and responsibilities, often leading to reduced productivity within an employment context.

Efficiency Wage

A wage rate paid by employers that is above the market equilibrium to increase worker productivity and efficiency.