Pricing Constraints Are

question 139

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)high-level goals held by the firm that recommend methods of pricing a firm may use.
• E)virtual boundaries used when setting the initial price on a new product.

Interpret the degree of operating leverage and its impact on business financial performance.

Understand the principles behind sensitivity and simulation analysis for project evaluation.

Recognize the challenges and strategies related to project financing and rationing.

Identify the different types of costs in business (e.g., sunk, opportunity, incremental).

---

Definitions:

Consideration

In contract law, it is something of value exchanged by the parties involved in a contract, making the agreement legally binding.

Accord And Satisfaction

A legally binding agreement to settle a disputed claim for a definite amount.

Adequacy Of Consideration

The fairness of the value or price exchanged in a contract, though the law typically does not require consideration to be equal in value.

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention in business affairs, advocating for a "let do" or "let people do as they please" approach.