Prices Are Called "Administered" When

question 270

Multiple Choice

Prices are called "administered" when:

• A) they are determined through negotiations between buyers and sellers.
• B) they fall below the "suggested list price."
• C) a marketing manager has to change the strategy every time a customer asks about the price.
• D) government intervenes to ensure that prices fluctuate freely in response to market forces.
• E) firms set their own prices for some period of time-rather than letting daily market forces determine their prices.

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Definitions:

Marginal Utility

The extra gratification or benefit received from using an additional unit of a product or service.

Video Game Rental

A service that allows consumers to borrow video games for a limited time period before returning them.

Perfectly Competitive Market

An economic scenario where numerous producers and consumers in the market have no ability to influence prices or product quality, allowing for free and fair competition.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.