When Janeka Purchased a Pair of Walkie-Talkies So She Could

question 165

Multiple Choice

When Janeka purchased a pair of walkie-talkies so she could stay in contact with her 10-year-old son when he was playing in the neighbourhood,she noticed that if she mailed the manufacturer a proof-of-purchase and the cash register receipt showing where and when she had purchased the two-way radio system and how much she had paid,she would receive a cheque for $25.What is this $25 an example of?

• A) a rebate
• B) a trade promotion
• C) a cash discount
• D) a reciprocal allowance

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Definitions:

Price to Clear

The market price at which the quantity supplied of a good matches the quantity demanded, leading to an equilibrium where there is no surplus or shortage.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Profit-maximizing Output

The production level where maximum profit is achieved by a company, when the marginal cost matches the marginal revenue.

Fixed Cost

Costs that do not vary with the level of output or production in the short term, such as rent, salaries, and insurance premiums.