A Critical Assumption When Using Target Profit Pricing Is That

question 125

Multiple Choice

A critical assumption when using target profit pricing is that

• A)a higher average price will not cause the demand to fall.
• B)a higher average price will usually cause the demand to fall.
• C)a higher average price will always cause the demand to fall.
• D)profit is relative to the current value of the dollar so this form of pricing is extremely risky.
• E)if you increase your average price, all of your competitors will do the same, so being first will be essential.

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Definitions:

Teratogens

Environmental agents that can cause deviations from normal development and can lead to abnormalities or death.

Prenatal Development

The process of growth and development within the womb, from conception to the birth of a child.

Cleavage

The process of cell division in a developing embryo where a single fertilized cell divides into multiple, smaller cells.

Ossification

The process by which bone is formed, renewed, and repaired in the body.