Which of the Following Is a Disadvantage Associated with Product-Line

question 74

Multiple Choice

Which of the following is a disadvantage associated with product-line pricing?

• A) It does not provide flexibility for making price changes on individual items.
• B) It results in consumers having difficulty in making purchase decisions.
• C) It is ineffective in differentiating between products.
• D) It does not allow shoppers to choose desired price ranges.

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Definitions:

Portfolio

An assortment of monetary assets such as shares, bonds, goods, money, and money equivalents, along with closed-end funds and exchange-traded funds (ETFs).

Risk Premium

The extra return expected by an investor for holding a risky asset compared to a risk-free asset.

Capital Asset Pricing Model

A model used to determine the theoretical expected return of an investment, considering its risk and the time value of money, compared to a risk-free return.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular security or project.