Which of the Following Statements About a Flexible-Price Policy Is

question 51

Multiple Choice

Which of the following statements about a flexible-price policy is most accurate?

• A)A flexible-price policy is especially suited to low cost items where profit margins are usually large.
• B)A flexible-price policy should be avoided with large ticket items such as cars or real estate.
• C)When using a flexible-price policy, the seller may risk violating the Robinson-Patman Act.
• D)Flexible pricing may result in race and gender discrimination.
• E)Sellers have little discretion when setting prices; the flexibility is primarily the function of the manufacturer.

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Definitions:

Direct Exporting

A method of international business where a company sells its products directly to buyers in a foreign market without the use of intermediaries.

Agricultural Producer

An individual or company involved in the cultivation of plants and rearing of animals for food, fiber, and other products.

World Bank

An international financial institution offering loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Agricultural Exports

Products derived from farming and agriculture that are sold and shipped to other countries, contributing to a nation's economy.