Which of the Following Is True of Pricing Based on Competitor-Oriented

question 8

Multiple Choice

Which of the following is true of pricing based on competitor-oriented strategies?

• A)Value is only implicitly considered in this type of strategies.
• B)Prices are decided based on the value perceived by customers.
• C)Prices for new products are always low to reduce competition.
• D)Products are priced to ensure a standard return on investment.
• E)A profit margin is set, which determines the price of products.

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Definitions:

Efficient Markets Hypothesis

The Efficient Markets Hypothesis suggests that asset prices in financial markets fully reflect all available information at any given time, making it impossible to consistently achieve higher returns than the overall market.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed, that lenders charge borrowers or the rate earned by depositors.

Interest Rate

The percentage charged on the total amount borrowed or earned on the total amount saved or invested.

Informationally Efficient

A characteristic of markets where all available information is already reflected in the prices of assets, ensuring that no participant can achieve consistent excess returns.