Companies That Use Value-Based Pricing Establish Selling Prices Based on the Economic

question 218

True/False

Companies that use value-based pricing establish selling prices based on the economic value of the benefits that their products and services provide to customers.

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Definitions:

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs (goods and services) produced per input used (such as labor, materials, and capital).

Resource

An economic or productive factor required to accomplish an activity, often considered in terms of time, labor, capital, and materials.

Complementary Resource

refers to inputs or goods that are used together with another resource or good to produce a product or service.

Marginal Revenue Product

This is the additional revenue generated from employing one more unit of a factor of production, such as labor.