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1. The following terms appeared on an invoice dated May 22nd, which was sent by a manufacturer to a retail store: 2/10, net 30. The amount of the invoice was $2,000. Assuming the retailer paid the invoice on June 1 (within 10 days after the products were delivered), how much should he have paid?
a. $1,900
b. $1,800
c. $2,040
d. 1,960
2. Most firms operate in monopolistic competition, where products and whole marketing mixes are not exactly the same. This implies that:
a. there are pricing options.
b. value pricing has no advantage.
c. it's foolish to offer products above the market price.
d. there are no price choices in most markets.
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