The Problem with Net Listings Is That

question 6

Multiple Choice

The problem with net listings is that

• A) the seller is assured of receiving the net amount he specifies.
• B) the broker receives a higher than average commission.
• C) the broker does not have to submit the offer to the seller if the offer is too low.
• D) there could be a conflict of interest if dealing with an inexperienced seller.

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Definitions:

Maximize Profit

The primary goal of businesses to achieve the highest possible profit margin by optimizing revenue while minimizing costs.

Fixed Costs

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance premiums, providing stability in budgeting and planning.

Value-based Pricing

A pricing strategy where the price is set based on the perceived value to the customer rather than based on the cost of the product or historical prices.

Economic Value

The measure of the benefit provided by a good or service to an economic agent.