Which of the Following Assumptions Is the Strategy of Pricing

question 82

Multiple Choice

Which of the following assumptions is the strategy of pricing above the market based on?

• A) Higher price implies higher quality.
• B) Higher price means higher customer support.
• C) Higher prices mean higher customer satisfaction.
• D) Higher price creates higher demand.
• E) Higher price means easier distribution.

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Definitions:

Margin

Net operating income divided by sales.

Average Operating Assets

The average value of assets used during a specific period in the day-to-day operations of a business.

Net Operating Income

An entity's income from operations, calculated by subtracting operating expenses from revenues generated from normal business operations, excluding non-operating income and expenses.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business assets.