When a Seller Determines the Selling Price by Adding to Cost

question 101

Multiple Choice

When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for,the seller is using _____ pricing.

• A) profit maximization
• B) demand-oriented
• C) break-even
• D) target return
• E) markup

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Definitions:

Conspiracy

Agreement between firms to unduly lessen competition.

Competition Act

Legislation aimed at preventing anti-competitive practices in the marketplace, protecting consumers, and promoting fair and efficient competition.

Fixed Price

A pricing strategy where the price of a product or service is agreed upon and does not change, regardless of market fluctuations.

Competition Tribunal

A specialized tribunal dealing with matters related to competition law, including mergers, monopolistic practices, and other issues that may affect fair competition.