A Company Designs What It Considers to Be a Good

question 56

Multiple Choice

A company designs what it considers to be a good product,calculates the expenses of making the product,and sets a price that adds a standard markup to the cost of the product.This approach to pricing is called ________ pricing.

• A) value-added
• B) good-value
• C) cost-plus
• D) competitor-based
• E) break-even

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Definitions:

Actual Output

Refers to the real or achieved results or outcome of a process, which can be compared to expected or intended outputs.

Potential Output

Potential output is the maximum amount of goods and services an economy can produce when it fully uses its available resources.

Köhler Effect

A phenomenon in social psychology where less capable members of a group are motivated to increase their effort on a task to match the performance levels of more capable members.

Productive Individuals

People who are consistently able to achieve high output within the expected timeframes, contributing significantly to their teams or projects.