If a Business Decides to Reduce Its Prices Once in a While

question 175

Multiple Choice

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

• A) price reduction planning.
• B) random discounting.
• C) bait pricing.
• D) periodic discounting.
• E) penetration pricing.

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Definitions:

MRP of Labor

The Marginal Revenue Product of Labor, representing the additional revenue generated from hiring one more unit of labor.

Market Wage Rate

The prevailing rate of pay for work of a similar nature within a given labor market.

Hiring Labor

The process of finding, selecting, and employing people to work for wages or salaries.

Profit Maximizing

The mechanism through which a firm calculates the price and output level to maximize its profits.