Which of the Following Seems the Most Likely Pricing Approach

question 159

Multiple Choice

Which of the following seems the most likely pricing approach for a monopoly?

• A) Charge customers whatever you please.
• B) Give customers a real bargain on price.
• C) Charge a price that will not cause consumer demand to drop.
• D) Undercut the prices of the competition.

---

Definitions:

Facility Cost

The financial expenditure associated with the physical infrastructure of a business, including construction, maintenance, and utilities.

Processing Cost

The expenses involved in the operations required to process goods or services, including labor, materials, and overheads.

Standard Deviation

A measure of the dispersion or variation in a distribution or set of data, indicating how much individual data points differ from the mean.

Safety Inventories

Additional quantities of stock kept on hand to prevent out-of-stock situations due to uncertainties in supply or demand.