Which of the Following Is a Justification for Setting a Higher

question 85

Multiple Choice

Which of the following is a justification for setting a higher price in the home market than in the international market?

• A)There may be few or no challenges from competition in the international market.
• B)The market potential might be limited.
• C)Buyers in the international market could afford the higher price.
• D)The firm may have the goal of increasing international market share through penetration pricing.

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Definitions:

Required Rate

The minimum expected return by investors to make an investment worthwhile, considering the risk involved.

CCA Class

Pertains to a classification system for tax purposes, grouping assets with similar characteristics for capital cost allowance claims in Canada.

Net Present Value

Net present value is a financial metric that calculates the value of a series of cash flows by discounting them back to their present value using a specific rate.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted into cash in the short term, like buildings, machinery, and land.