Which of the Followingstatements Is True of Odd Pricing

question 41

Multiple Choice

Which of the followingstatements is true of odd pricing?

• A)It is the idea that if a television costs $599 instead of $600, consumers perceive the first one to be far cheaper than it actually is.
• B)This strategy includes random and arbitrary price fluctuations in order to increase foot traffic.
• C)It is the most popular method of establishing a fixed margin by determining the actual cost of each product.
• D)It means that a producer has decided to decrease variable costs.

Understand the various methods and purposes of business communications.

Identify and apply appropriate organizational methods for verbal and written communication.

Recognize the importance and structure of different business documents.

Appreciate the role of tone, clarity, and audience focus in effective communication.

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Definitions:

Conversion Value

The monetary worth at which a convertible security (like convertible bonds) can be converted into a specified number of shares of common stock.

Call Price

The specified price at which a callable bond can be redeemed by the issuer before its maturity.

Mortgage-Backed Security Tranches

Portions of a mortgage-backed security segregated by risk, payment timing, or other characteristics to suit different investors.

Default Risk Exposure

The likelihood that a borrower will be unable to make required payments on their debt obligations.