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Q.

What does MRP stand for ?


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a

Minimum retail price

b

Maximum retail price

c

Maximum return price

d

None of the above 

answer is B.

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Detailed Solution

MRP stands for maximum retail price. It refers to the maximum price at which a shopkeeper can sell a commodity. Consumers can also bargain with the shopkeepers to sell them at a price below the maximum retail price as the cost of production is less than the maximum retail price. Under the consumer protection act, the producer must mention the maximum retail price of the commodity. This is done to protect the consumer so that shopkeepers do not sell the products at any price and do not exploit the consumer.
 
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