What Is the Critical Assumption When Using Target Profit Pricing

question 311

Multiple Choice

What is the critical assumption when using target profit pricing?

• A)A higher average price will usually cause the demand to fall.
• B)A higher average price will always cause the demand to fall.
• C)Profit is relative to the current value of the dollar so this form of pricing is extremely risky.
• D)A higher average price will not cause the demand to fall.
• E)If the average price is increased, all a firm's competitors will do the same.

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Definitions:

Intelligence

The cognitive ability to learn, understand, adapt, and solve problems.

Intellectual Processing

The mental activities involved in the understanding, processing, and communicating of information.

Intellectual Functioning

A measure of a person's ability to think, reason, solve problems, and understand complex ideas.

Intellectual Disability

A state defined by notable restrictions in intellectual abilities as well as in adaptive conduct, encompassing various common social and practical abilities.