Fit & Flare Is a Fitness Equipment Manufacturer

question 85

Multiple Choice

Fit & Flare is a fitness equipment manufacturer. It sells its equipment directly to the public through its own stores at a huge discount. From the given scenario, it can be concluded that Fit & Flare is a(n) _____.

• A) outlet store
• B) discount store
• C) convenience store
• D) independent wholesaler

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Definitions:

Price Discrimination

A method of setting prices in which the same provider sells nearly the same goods or services at disparate prices in different markets.

Rationing

A system of controlling the distribution of resources, goods, or services by limiting access to ensure equitable distribution, often implemented during shortages.

Reselling

The act of selling a product or service again, possibly after acquiring, refurbishing, or repackaging it.

Perfect Price Discrimination

A situation where a seller charges the maximum possible price for each unit consumed that each consumer is willing to pay, thus capturing the entire consumer surplus.