Which of the Following Pricing Strategies Is Used by Many

question 23

Multiple Choice

Which of the following pricing strategies is used by many e-tailers in order to provide flexibility between buyers and sellers in setting a price?

• A) Penetration pricing
• B) Psychological pricing
• C) Breakeven pricing
• D) Fixed pricing
• E) Dynamic pricing

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Definitions:

Marginal Cost

The extra charge involved in producing an additional unit of a product or service.

Average Total Cost

The total cost divided by the quantity of output produced, reflecting the average cost per unit of output.

Profit

The financial gain made in a transaction, calculated as the difference between the revenue received and the costs incurred.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced.