A Critical Assumption When Using Target Profit Pricing Is That

question 77

Multiple Choice

A critical assumption when using target profit pricing is that

• A) a higher average price will not cause the demand for a product to fall.
• B) a higher average price will cause new competitors to join the industry.
• C) a higher average price will be offset by reductions in manufacturing costs.
• D) profit is tied to the current value of the dollar in relation to foreign currencies.
• E) any price increase will be followed quickly by similar moves from all of your competitors.

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Definitions:

Evidence-Based Measure

A tool or instrument used in healthcare that has been scientifically validated to assess outcomes, symptoms, or other variables of interest.

Reliability

The degree to which an assessment tool produces stable and consistent results over multiple measurements.

Secondary Gains

Secondary gains are the indirect benefits, often of a psychological nature, that one may derive from being ill or assuming a victim role, such as attention or sympathy.

Belligerent Attitude

A belligerent attitude is characterized by aggressive or hostile behavior, often displayed during conflicts or confrontations.