A Close-Out Retailer Can Purchase a Discontinued Digital Camera for $79

question 85

Multiple Choice

A close-out retailer can purchase a discontinued digital camera for $79 and wants to obtain a 40 percent markup at retail.What retail price should be charged?

• A) $82.60
• B) $98.33
• C) $119.00
• D) $131.67

---

Definitions:

Peak-Load Pricing

A pricing strategy that involves charging higher prices during periods of high demand and lower prices during periods of lower demand.

Marginal Cost

The extra cost associated with producing a further unit of a product or service.

Market Output

The total quantity of a good or service produced and sold by firms in a particular market.

Intertemporal Price Discrimination

A pricing strategy where prices are varied over time for the same product to exploit differences in willingness to pay.