Odd Pricing Became Common in the Late 19th Century

question 191

Multiple Choice

Odd pricing became common in the late 19th century.Although the origins of odd pricing are uncertain, several explanations for the practice have been given.Which of the following is one of these explanations?

• A)Odd pricing forced employees to give customers change. This made it more likely that employees would record sales rather than pocketing their customers' money.
• B)Odd pricing began in an era when it was difficult for owners and managers of firms to determine the marginal cost of the goods and services they sold. Odd prices were rough estimates designed to cover costs plus earn firms a profit.
• C)Odd pricing was begun in England in the 1700s when America was part of the British Empire. Members of the British Royal Court were given the task of pricing products. After independence, merchants in the United States carried on the practice of odd pricing.
• D)After the passage of the Sherman Act in 1890, merchants used odd pricing as a means of avoiding prosecution for antitrust violations.

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Definitions:

Selling Price

The actual price at which a product or service is sold to the customer.

Camping Equipment

Gear or tools specifically designed for use while camping, including tents, sleeping bags, and portable cooking devices.

Portable Gas Stove

A compact and transportable cooking device that uses gas fuel for outdoor or emergency cooking.

Dollar Markup

The total of operating expenses and net profit. Markup expressed as an amount rather than as a percent.