Dan Owns a Factory That Manufactures Smartphones

question 134

Multiple Choice

Dan owns a factory that manufactures smartphones.He has a lot of costs every month to keep his factory running.Which of the following is one of Dan's fixed costs?

• A)plastic used to make the smartphones
• B)his electricity bill for the factory
• C)his mortgage on the factory
• D)memory devices used to store music and video on the smartphones

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Definitions:

Dynamic Pricing

A pricing strategy where prices are adjusted in real time based on market demand, supply conditions, and other factors.

Prices Based

Refers to a pricing strategy determined by factors such as cost of production, competition, and perceived value by the consumer, often adjusted to market conditions.

Odd Pricing

A pricing strategy where items are priced slightly below a round number (e.g., $199.99 instead of $200), believing it psychologically encourages more sales.

Yield Management

A strategy for maximizing revenue even when a firm has a fixed amount of something (goods, services, or capacity).