Studied by 30 peoplePrice Discrimination
retailer's charge different prices for the same item; this is legal and normal; based on location and type of customer
Resale Price Discrimination
distributors and manufacturers get resellers, they will set specific price for resellers at a set price
Predatory Fixing
entrepreneur/business owner will set their price very low just to eliminate the competition
Horizontal Price Fixing
when different business owners will have an agreement to price their products the same
Markup
difference between the cost of the item and its selling price
Cost Price
amount of money that is spent to produce goods or services before any profit is added
Selling Price
amount of money a buyer pays for a good or service
Initial Markup
difference between the original price and the cost whether an item was sold or unsold
Maintained Markup
difference between the actual selling price and the cost after an item was sold
Markdown
difference between the original selling price and the new selling price
Note
Flashcard