A Critical Assumption When Using Target Profit Pricing Is That

question 64

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) new technology will cause the demand for a product to rise.
• C) a higher average price will deter moves by competitors.
• D) this form of pricing is extremely risky because profit is tied to the current value of the dollar.
• E) competitors will not copy any pricing changes.

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Definitions:

Reinforcers

Stimuli, which after being presented in conjunction with an action, increase the likelihood of that action being repeated in the future.

Color Constancy

The psychological feature that allows the human brain to perceive colors consistently under varying lighting conditions.

Motion Parallax

A depth cue in which objects closer to the observer move faster across the visual field than objects further away, creating a sense of depth.

Retinal Disparity

A perceptual difference between the images projected on the two retinas when viewing the world from slightly different angles, critical for depth perception.