An Intermediary Seeking High Profits Should

question 103

Multiple Choice

An intermediary seeking high profits should:

• A) use the lowest markup that will still cover selling expenses.
• B) use price lining.
• C) use high markups.
• D) choose the markup which maximizes turnover.
• E) try to find the markup level related to the most profitable price.

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Definitions:

Public Policy

Guiding principles and philosophies that underlie the laws and actions of a government, aimed at ensuring the public's general welfare.

Unenforceable

A term applied to a contract that, because of a law, cannot be enforced by the courts.

Substantive Unconscionability

Unconscionability that derives from one-sided, unjust, or overly harsh substance in a contract.

Maximum Interest Rate

The highest rate of interest that can be charged on loans or credit, often regulated by law to prevent usury.