A Company That Views Pricing as a Static Element in a Business

question 90

Multiple Choice

A company that views pricing as a static element in a business decision most probably

• A) places a high priority on foreign business.
• B) sets prices to achieve specific objectives such as targeted return on profit.
• C) views export sales as active contributions to sales volume.
• D) views domestic sales as an insignificant source of revenue.
• E) places a low priority on foreign business.

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Definitions:

Perfectly Elastic

A situation where the demand or supply for a product is infinitely responsive to changes in price, shown as a horizontal line on a graph.

Loanable Funds

A concept in economics that describes the market where savers supply funds for loans to borrowers.

Free-Land Era

A historical period characterized by the availability and acquisition of land at little to no cost, usually to promote settlement and development.

Zero Price

A situation where a product or service is offered to consumers at no cost, often as a part of a promotional strategy or business model.