A Pricing Tactic Is

question 76

Multiple Choice

A pricing tactic is

• A) a long-term and broad-based approach to pricing.
• B) an integrative pricing approach based on the five Cs.
• C) an approach that can be used only with consumers.
• D) a short-term approach that is often in response to a competitive threat.
• E) an approach that can be used only in a business-to-business setting.

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Definitions:

MR = MC

Marginal Revenue equals Marginal Cost, a condition for profit maximization in firms, indicating optimal output level.

Monopolistically Competitive

A business environment where multiple organizations supply items that resemble each other but are not exact copies, enabling them to have some market dominance.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to price.

Marginal Cost

The extra charge incurred when making one more unit of a good or service.