Which of These Statements Is Most Accurate

question 150

Multiple Choice

Which of these statements is most accurate?

• A) Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products.
• B) Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit.
• C) Marketers must ensure that firms in their channels of distribution make an adequate profit or they will be cut off from their customers.
• D) Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times.
• E) Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.

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Definitions:

Break-Even

The point at which total revenue equals total costs, meaning there is no net loss or gain.

Output Level

Refers to the total quantity of goods or services that a firm produces over a specific period.

Scarce Factor

A resource or input in limited supply relative to demand, which can constrain production, increase costs, or cause competition.

Diamond Monopoly

A diamond monopoly refers to a market structure where a single firm has exclusive control over the production and sale of diamonds.