Some Developers of Apps for the Apple IPhone Price Their

question 309

Multiple Choice

Some developers of apps for the Apple iPhone price their apps low at launch to encourage sales and get attention so they can move into the prestigious "Top 25" list.Then,they frequently raise prices to get a higher profit margin on later sales.The initial low price is a(n)

• A)noncumulative quantity discount.
• B)temporary sale.
• C)introductory price deal.
• D)skimming price.
• E)cumulative quantity discount.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by its similarity to a prototype.

Cognitive Map

A mental representation of one's physical environment, helping individuals navigate and understand spatial information.

Algorithm

A step-by-step procedure or formula for solving a problem or completing a task in a finite number of steps.

Base-Rate Information

Statistical information about the frequency or prevalence of a phenomenon, event, or characteristic within a given population.