Table 7-7 The Following Table Represents the Costs of Five Possible Sellers

question 395

Multiple Choice

Table 7-7
The following table represents the costs of five possible sellers.

-Refer to Table 7-7.Who is a marginal seller when the price is $1,200?

• A) Bobby
• B) Bobby and Abby
• C) Carlos, Dianne, and Evalina
• D) Carlos, Dianne, Evalina, and Bobby

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Definitions:

Penetration Pricing

A marketing strategy where the initial price of a product is set lower than the eventual market price to attract new customers and gain market share.

Reference Pricing

A type of psychological pricing in which a lower-priced item is compared to a more expensive brand in hopes that the consumer will use the higher price as a comparison price.