Demand-Based Pricing Does Not Consider That Customers Might Be Sensitive

question 32

True/False

Demand-based pricing does not consider that customers might be sensitive to nonmonetary prices and may judge quality on the basis of price.

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Definitions:

Variable Input

Inputs or resources whose quantity can be changed in the short term to adjust the level of production, such as labor or raw materials.

Labor Market

The marketplace in which employers find workers and workers find jobs, characterized by the demand and supply of labor.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding other factors constant.

Worker

An individual employed to perform tasks or services in exchange for compensation, such as wages or salaries.