price

The cost at which something is obtained. Something which one ordinarily accepts voluntarily in exchange for something else. The consideration given for the purchase of a thing.

Amount which a prospective seller indicates as the sum for which he is willing to sell; market value. The amount of money given or set as the amount to be given as a consideration for the sale of a specified thing. The term may be synonymous with cost, and with value, as well as with consideration, though price is not always identical either with consideration. The consideration given for the purchase of a thing.

Amount which a prospective seller indicates as the sum for which he is willing to sell; market value. The term may be synonymous with cost, and with value, as well as with consideration, though price is not always identical either with consideration.

See also asking price

- fair market value

- going price

- liquidation price; open price term.

@ support price

A minimum price set by the government for a particular agricultural raw commodity. For example, the support price of wheat may be set at, say $2 per bushel. That means that the farmer never has to sell his or her wheat below that support price.

See also parity

@ target price

Prices set by the government for particular agricultural commodities such as wheat and corn. If the actual market price falls below the target price, farmers get a subsidy from the government for the difference.

See parity.

@ unit pricing

Pricing of food products expressed in a well-known unit such as ounces or pounds

+ unit pricing

System under which contract items are priced per unit and not on the basis of a flat contract price

@ price current

A list or enumeration of various articles of merchandise, with their prices, the duties, if any, payable thereon, when imported or exported, with the drawbacks occasionally allowed upon their exportation, etc

@ price discrimination

Exists when a buyer pays a price that is different from the price paid by another buyer for an identical product or service. Price discrimination is prohibited if the effect of this discrimination may be to lessen substantially or injure competition, except where it was implemented to dispose of perishable or obsolete goods, was the result of differences in costs incurred, or was given in good faith to meet an equally low price of a competitor. Clayton Act, No. 2.

See also predatory intent

- Robinson-Patman Act

@ price earnings ratio

@ price/earnings ratio

The market price per share of a company's common stock divided by the company's annual earnings per share. For example, a stock selling for $50 per share, and earnings of $5 per share, is said to be selling at a price earnings ratio of 10 to 1

@ price-fixing

A combination formed for the purpose of and with the effect of raising, depressing, fixing, pegging, or stabilizing the price of a commodity. Optivision, Inc. v. Syracuse Shopping Center Associates, D.C. N.Y., 472 F.Supp. 665, 676.

The cooperative setting of price levels or range by competing firms, which would otherwise be set by natural market forces. Such agreements are in violation of the Sherman Antitrust Act. Price-fixing within intent of Sherman Act is either horizontal (dealing with arrangements among competitors, as between competing retailers) or vertical (attempting to control resale price, as agreements between manufacturer and retailer). Knuth v. Erie-Crawford Dairy Coop. Ass'n, D.C.Pa., 326 F.Supp. 48, 53.

Minimum fee schedules proposed and enforced by state bar associations are within orbit of prohibited price-fixing under Sherman Act. Goldfarb v. Virginia State Bar, 421 u.s. 773, 95 s.ct. 2004, 44 l.ed.2d 572.

see also horizontal price-fixing

- peg

- per se violations

- predatory intent

- resale price maintenance

- vertical price-fixing contract

@ price index

A number representing average prices as a percent of the average prevailing at some other time (called the base or base year)

@ price leadership

A market condition in which a leader in the industry establishes a price and the others in the field follow suit by adopting that price as their own. Price leadership implies a set of industry practices or customs under which list price changes are normally announced by a specific firm accepted as the leader by others, who follow the leader's initiatives. Such practices have been held to not be in violation of the antitrust laws in the absence of a showing of confederated action or an intent to monopolize. United States v. United States Steel Corp., 251 U.S. 417, 40 S.Ct. 293, 64 L.Ed. 343; United States v. International Harvester Co., 274 U.S. 693, 47 S.Ct. 748, 71 L.Ed. 1302

@ price supports

A device used generally by the federal government to keep prices (normally commodity prices) from falling below a predesignated level by such means as loans, subsidies, and government purchases.

See also parity

- price

@