Capital Motors, a car dealership, recently announced that itwill rely less on high-volume strategies such as discounts andrebates to improve its profitability. Another strategy it willemploy is to sell fewer cars to rental fleets, which eventuallyreturn the cars to Capital for sale at low auction prices. Howdo these types of sales affect Capital’s profitability?

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.