Use the Table Below to Answer the Following Questions

question 97

Multiple Choice

Use the table below to answer the following questions.
Table 11.3.1

-Refer to Table 11.3.1, which gives Tania's total cost schedule. The average total cost of producing 16 teapots per day is

• A)$2.
• B)$5.
• C)$3.33.
• D)$7.50.
• E)$5.51.

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Definitions:

Reference Pricing

A type of psychological pricing in which a lower-priced item is compared to a more expensive brand in hopes that the consumer will use the higher price as a comparison price.

Price Skimming

A pricing strategy involving setting an initially high price before gradually lowering it over time as the product's novelty wears off.