________ Is a Pricing Tactic a Firm Uses for Two

question 134

Multiple Choice

________ is a pricing tactic a firm uses for two products that work only when used together.The firm sells one item at a very low price and then makes its profit on the second high-margin item.

• A)Two-part pricing
• B)Price bundling
• C)Captive pricing
• D)Penetration pricing
• E)Skim pricing

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Definitions:

Reserved Funds

Monies set aside for specific purposes or contingencies, not to be used for general expenses.

Financial Difficulties

A situation where an individual or organization struggles to manage financial obligations, potentially leading to insolvency.

Bank Loan

A sum of money lent by a bank to a borrower with the expectation of being paid back with interest.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and certain rights.