Which of the Following Is Not a Qualitative Issue in a Special

question 77

Multiple Choice

Which of the following is not a qualitative issue in a special order pricing decision?

• A)Will accepting the special order require the hiring of extra workers or payment of overtime?
• B)Will accepting the special order result in the loss of regular customers?
• C)Will accepting the order generate an increase in operating income?
• D)If the special order generates new business, will the customer purchase again at the regular price?

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Definitions:

Competitive Equilibrium

A market state where supply equals demand, and no economic forces are compelling either price or quantity to change.

Oligopolistic

Referring to a market structure characterized by a small number of firms that have significant control over prices and market share.

Market

Collection of buyers and sellers that, through their actual or potential interactions, determine the price of a product or set of products.

Lerner Index

An economic measure of a firm's market power, calculated as the difference between price and marginal cost relative to price.