A Fixed-Price Policy Refers to

question 26

Multiple Choice

A fixed-price policy refers to

• A) setting different prices for products and services in real time in response to supply and demand conditions.
• B) setting the price of an entire line of products at a single specific pricing point.
• C) simultaneously setting prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
• D) adding a fixed percentage to the cost of all items in a specific product class.
• E) setting one price for all buyers of a product or service.

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Definitions:

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the hours worked to produce them.

Specializing

The process of focusing effort and resources on a limited number of activities to gain efficiency and expertise.

International Trade

The exchange of goods and services between countries, allowing for greater variety and availability of products, economies of scale, and increased efficiency.

Achieve

To successfully reach a desired or intended goal through effort, skill, or courage.