A Manufacturer Using __________ Is Setting a High Price So

question 169

Multiple Choice

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

• A)skimming pricing
• B)penetration pricing
• C)price lining
• D)odd-even pricing
• E)prestige pricing

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Definitions:

Earnings Before Taxes

A financial metric indicating the profit earned by a business before the deduction of tax expenses.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term; these include items like rent, salaries, and insurance.

Depreciation Expense

The distribution of a physical asset's cost over its lifespan to account for depreciation or becoming outdated.