Which of the Following Is a Competition-Oriented Approach to Pricing

question 57

Multiple Choice

Which of the following is a competition-oriented approach to pricing?

• A)skimming pricing
• B)target pricing
• C)customary pricing
• D)target return-on-sales pricing
• E)standard markup pricing

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Definitions:

Income Effect

The alteration in the consumption habits of a person or an economy due to a variation in actual income.

Inferior Good

A type of good for which demand decreases when income increases, and vice versa, unlike normal goods where demand increases with an increase in income.

Marginal Utility

The additional enjoyment or value that comes from the consumption of one more unit of a product or service.

Optimal Consumption

The allocation of resources or choosing of goods and services that maximizes the utility or satisfaction of a consumer, given their budget constraints.