When Products in an Industry Are Relatively Homogeneous and Price

question 19

Multiple Choice

When products in an industry are relatively homogeneous and price is a key purchase consideration:

• A) competition-based pricing becomes more important.
• B) demand-based pricing dominates pricing decisions.
• C) firms tend to use secondary-market pricing.
• D) cost-based methods like markup pricing are dominant.
• E) customary pricing is used.

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Definitions:

Long-Term Effects

The impacts or results of a policy, action, or event that manifest or become apparent over a lengthy period.

Pollution

The introduction of contaminants into the natural environment that cause adverse change and harm to ecosystems and human health.

Negative Externality

A cost experienced by a third party who did not choose to incur that cost, often related to environmental, social, or health issues.

Uncompensated Cost

Costs that occur when an action has effects, positive or negative, on third parties without those parties being compensated.