Which of the Following Statements About the Product Life Cycle

question 290

Multiple Choice

Which of the following statements about the product life cycle as a pricing constraint is most accurate?

• A)The newer a product is, the higher the price that can usually be charged.
• B)The later in the product life cycle a product is, the higher the price that can usually be charged.
• C)Once a product is considered nostalgic, the price will continue to rise indefinitely.
• D)Fads will generally have only two price points - high and low - but the values of those price points usually be within 10 percent of each other.
• E)Prices should not be changed until a product reaches its maturity stage

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Definitions:

Quick Ratio

A gauge of a business's capability to cover its short-term debts using its most readily accessible assets.

Fixed Asset

Long-term tangible assets that a company uses in its operations to generate income, such as buildings, machinery, and equipment.

Long-Term Debt

Borrowings of a company not due for payment within the upcoming 12-month period, often used for major investments or acquisitions.

Total Capitalization

The sum of a company's long-term debt, equity, and retained earnings, reflecting the total funding sourced from investors and creditors.