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A Manager at Kohl's Discovers That Macy's Has Reduced the Price

question 156

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A manager at Kohl's discovers that Macy's has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?


Definitions:

Specialization And Trade

An economic strategy where individuals or nations focus on the production of certain goods or services where they have a comparative advantage, leading to increased efficiency and trade benefits.

Total Output

The total quantity of goods and services produced in an economy at a given time period.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per unit cost as output increases.

Trade Sector

The segment of the economy that involves the exchange of goods and services across borders.

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