A Critical Assumption When Using Target Profit Pricing Is That

question 26

Multiple Choice

A critical assumption when using target profit pricing is that

• A)a higher average price will not cause the demand for a product to fall.
• B)a higher average price will cause the demand for a product to rise.
• C)a higher average price will always cause the demand for a product to fall.
• D)this form of pricing is extremely risky because profit is tied to the current value of the dollar.
• E)being first is essential if you increase your average price since all of your competitors will do the same.

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