Consider the Following Statements About Why Prices Are Often Based

question 42

Multiple Choice

Consider the following statements about why prices are often based on product costs:
I. Companies sell many products and services, and cost-based approaches provide a simple and direct pricing method.
II. The cost of a product or service provides a lower limit or floor, below which price should not be set in the long run.
III. Determining a company's demand and marginal revenue curves is difficult, costly, and time consuming.
Which of the above statements is (are) true?

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

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Definitions:

Us-Them Hostility

A psychological and social phenomenon where in-group members harbor negative attitudes and feelings towards out-group members, often leading to conflict and discrimination.

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Stereotype Bias

The tendency to form oversimplified and generalized views about a group of people, leading to prejudiced attitudes and behaviors.

Cultural Cause

Factors within a society's culture, such as beliefs, norms, and values, that can influence individuals' behaviors and societal outcomes.