Which of the Following Observations Concerning Reference Prices Is True

question 202

Multiple Choice

Which of the following observations concerning reference prices is true?

• A)The reference price is the company's cost to produce the product.
• B)Reference prices are set by regulators.
• C)Demand may increase if a firm's price is lower than a customer's reference price.
• D)All customers have the same reference prices for the same basic type of purchase.

---

Definitions:

Operational Definition

A description of a concept or variable in terms of the specific process or set of validation tests used to determine its presence and quantity.

Hypothesis

A proposed explanation for a phenomenon, intended to be tested through research.

Misery Loves Company

A popular adage implying that people who are unhappy may get some consolation from knowing that others are unhappy too.

Prediction

The act of forecasting what will happen in the future based on past and current data or evidence.