Jian Has Entered into a Contract with the Federal Government

question 14

Multiple Choice

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a:

• A) cost-based pricing strategy.
• B) supply and demand formula.
• C) demand-based pricing strategy.
• D) price leadership pricing strategy.

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Definitions:

Unfair Practices

Actions conducted by businesses or individuals that are dishonest, deceptive, or unethical, often violating consumer rights.

Intentional Interference

Deliberate actions by a person intended to disrupt or interfere with another's contractual or business relationships.

Public Interest

The welfare or well-being of the general public, often considered in legislation, government actions, and legal decisions.

Prospective Competitive Advantage

The potential for a firm to achieve a future position where it outperforms rivals in efficiency, quality, innovation, or customer service.