American Automobile Manufacturers and Dealers Appear to Adjust the Price

question 12

Multiple Choice

American automobile manufacturers and dealers appear to adjust the price (sticker prices plus financing charges) by periodically changing interest rates and by using rebates and surcharges as opposed to directly changing sticker prices.Assuming that they maximize their profits,this pricing approach may reflect

• A)a relatively low cost to adjust sticker prices.
• B)a relatively low cost to adjust advertising.
• C)a relatively high cost to adjust sticker prices.
• D)a relatively high cost of advertising.

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Definitions:

Substantive Interests

These are the core concerns, needs, or desires that individuals or groups seek to achieve through negotiation or conflict resolution.

Process Based

Process-based in negotiations refers to focusing on the methods and steps taken to achieve an agreement, rather than solely on the outcomes.

Relationship Based

Pertaining to approaches, decisions, or actions that prioritize the importance of interpersonal relationships.

Intangibles

Things that cannot be touched or measured precisely but are nonetheless valuable, such as brand reputation or goodwill.