Which of the Following Approaches to Pricing Considers That Customers

question 69

Multiple Choice

Which of the following approaches to pricing considers that customers may judge quality on the basis of pace?

• A) Demand-based pricing
• B) Profit-based pricing
• C) Competition-based pricing
• D) Supply-based pricing
• E) Cost-based pricing

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Definitions:

Shut Down

The process of ceasing operations or activities, often temporarily, in a business or other organization.

AVC

Average variable cost refers to the total variable cost per unit of output, calculated by dividing the total variable costs by the amount of output produced.

Price

The amount of money required to purchase a good or service, often determined by factors such as supply and demand.

Perfectly Competitive Firm

A company that operates in a market where there are many buyers and sellers, the product is homogeneous, and there are no barriers to entry or exit.