Consider the Following Statements About Pricing

question 94

Multiple Choice

Consider the following statements about pricing:
I. Prices are often determined by the market, subject to the constraint that costs must be covered in the long run.
II. Prices are often based on costs, subject to the constraint that customers and competitors will exert an influence.
III. A balance of market forces and cost is important when making pricing decisions.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) I and III.
• D) II and III.
• E) I, II, and III.

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Definitions:

Trace Consolidation

The process by which memories become more stable in the brain, transforming from a vulnerable state to a more permanent one.

Encoding Specificity

The principle that the recall of information is improved if the cues present at the time of encoding are also present at the time of retrieval.

Context and Memory

The way in which the situation or environment in which information is learned can affect recall of that information.

Depth of Processing

A theory suggesting that the depth (shallow to deep) at which information is thought about affects the duration and strength of memory of that information.