Jian Has Entered into a Contract with the Federal Government

question 14

Multiple Choice

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a:

• A) cost-based pricing strategy.
• B) supply and demand formula.
• C) demand-based pricing strategy.
• D) price leadership pricing strategy.

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Definitions:

Amino Group

A functional group consisting of a nitrogen atom attached by single bonds to hydrogen atoms, alkyl groups, or aryl groups.

Amino Acid

Organic compounds containing an amine group, a carboxylic acid group, and a side chain that varies between different amino acids, key building blocks of proteins.

Aspartic Acid

One of the 20 common amino acids in proteins, with a carboxylate side chain, making it acidic and polar.

Succinic Acid

A dicarboxylic acid with the chemical formula C4H6O4, used in the manufacture of pharmaceuticals, food additives, and biodegradable polymers.