Mark Runs a Driving Range in New York City

question 44

Multiple Choice

Mark runs a driving range in New York City.He has noticed that within a 15-minute walk you can get to three competitors.Mark decides to look at his competitors' pricing and then determine his best pricing strategy based on all of the information.Mark is utilizing ___________________.

• A)Penetration pricing
• B)Price skimming
• C)Target ROI
• D)Competitor-based pricing
• E)Value pricing

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Definitions:

Variable Product Cost

Costs that vary directly with the volume of production, such as materials and labor directly involved in manufacturing.

Fixed Period Cost

Costs that remain constant for a specific period of time regardless of the level of output or activity.

Administrative Cost

Expenses related to the general operation of a company, including office salaries, utilities, and legal fees, but not including production costs.

Toll-free Telephone Line

A phone number that allows callers to reach businesses without incurring charges, often used for customer support.