Identify the Main Advantage of Price Lining

question 251

Multiple Choice

Identify the main advantage of price lining.

• A) It is quite similar to prestige pricing.
• B) It can simplify both buying and selling.
• C) It tends to reduce turnover rates.
• D) It results in larger inventories.
• E) It confuses customers.

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Definitions:

Res Ipsa Loquitur

A legal doctrine stating that negligence of the defendant can be inferred from the nature of the accident, without direct evidence.

Court

A governmental institution authorized to resolve legal disputes and administer justice.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Comparative Negligence

A legal doctrine that apportions damages based on the degree of fault attributable to each party in a lawsuit.