Which of the Following Statements Regarding Pricing Objectives Is Most

question 247

Multiple Choice

Which of the following statements regarding pricing objectives is most accurate?

• A)Pricing objectives should never change.
• B)Pricing objectives may change depending upon the relative market share of competitors.
• C)Pricing objectives involve the day-to-day operations of the finance department, the marketing department, and production.
• D)Pricing objectives may change depending on the financial position of the company, the segments in which it does business, including the country in which the product is sold.
• E)Pricing objectives are extremely sensitive to even the slightest change in the local economy.

---

Definitions:

Willingness To Pay

The maximum price at which a consumer is prepared to buy a good or service, reflecting the value they place on it.

Full Cost

The total expense associated with producing a good or service, including both fixed and variable costs.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, essentially a measure of producer benefit.

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.