Final answer:
True. The price that a manufacturer charges a retailer for an item is indeed the wholesale price. This is the price at which the manufacturer sells their products in bulk to retailers.
Step-by-step explanation:
The price that a manufacturer charges a retailer for an item is indeed the wholesale price. This is the price at which the manufacturer sells their products in bulk to retailers, who can then markup the price and sell it to customers.
The wholesale price is typically lower than the retail price because it doesn't include the additional costs associated with running a retail store, such as marketing, staff salaries, and rent. Wholesale prices are set based on factors like manufacturing cost, economies of scale, and competition in the market.
For example, let's say a manufacturer produces a pair of shoes at a cost of $20 per unit. They may sell these shoes to a retailer at a wholesale price of $30 per unit. The retailer can then sell the shoes to customers at a retail price of $50 per unit, making a profit of $20 per unit.