Which of the Following Statements Regarding Pricing Constraints Is Most

question 243

Multiple Choice

Which of the following statements regarding pricing constraints is most accurate?

• A)When a product is in the introductory stage of the product life cycle,there is very little latitude in setting the initial price since consumers still don't know what the product can really do.
• B)A company has more latitude in setting an initial price if the product is in the introductory stage of its life cycle and there is limited competition.
• C)The greater the number of products in a company's product line,the less the product features of similar products can affect price.
• D)The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
• E)To avoid cannibalization,the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

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Definitions:

Right-To-Work Law

Legislation that prohibits union security agreements between companies and workers' unions, allowing individuals in the workforce to work without being compelled to join a union.

Union Shop

A place of employment where nonunion workers may be employed for a trial period of not more than 30 days, after which the nonunion workers must join the union or be discharged.

Closed Shop

A place of employment in which the employer, by agreement, hires only union members in good standing.

Public Employees

Individuals employed by government entities at the federal, state, or local level.