Which Approach to Pricing Is Most Suitable When a Company

question 54

Multiple Choice

Which approach to pricing is most suitable when a company has high variable costs relative to its fixed costs?

• A) full-cost pricing
• B) marginal-cost pricing
• C) static-cost pricing
• D) demand-based pricing
• E) premium pricing

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Definitions:

Service-based Economy

An economy that is primarily focused on the provision of services rather than the production of goods.

Industrialized Nations

Countries that have highly developed industries and infrastructure, often characterized by a high standard of living.

Probable Stage

A phase or condition where something is likely to occur or is expected based on current evidence or trends.

Education and Income

The correlation between the level of education attained by individuals and their potential to earn higher incomes.