Pricing Constraints Are

question 164

Multiple Choice

Pricing constraints are

• A)the controllable elements in a firm's marketing mix that allow it to charge the highest price possible.
• B)formulas used in establishing break-even points, price elasticity of demand, and marginal analysis of revenues and costs.
• C)factors that limit the range of prices a firm may set.
• D)factors that expand the range of prices a firm may set.
• E)virtual boundaries used when setting the initial price on a new product.

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Definitions:

Present Value

It measures the current value of a future amount of money or stream of cash flows, using a specific discount rate to account for the time value of money.

Projected Future Cash Flows

An estimation of the amount of money expected to be received and paid out by a business over an upcoming period.

Fundamental Analysis

An approach to evaluating a security that involves analyzing financial statements, health of the economy, industry conditions, and other factors to determine a security's intrinsic value.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or a company, based on fundamentals, irrespective of market value.