Amy Is Starting a New Business and Is Confused About

question 128

Multiple Choice

Amy is starting a new business and is confused about how to determine the price to set for her product.She comes to you for advice and you tell her,correctly,that the two factors that determine the price at which a product will sell are

• A) the market and the awareness that costs and expected sales can be used only to establish aprice floor.
• B) the market and status-quo.
• C) the cost of production and maximum price that can be charged.
• D) the competition price point and product demand.

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Definitions:

BPR

Business Process Reengineering, which is the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.

NBA

National Basketball Association, a professional basketball league in North America composed of 30 teams.

Social Media

Platforms and websites that enable users to create and share content or to participate in social networking.