In Contrast to Cost-Plus Pricing,target Pricing Never Determines Product Characteristics

question 43

True/False

In contrast to cost-plus pricing,target pricing never determines product characteristics and target price on the basis of customer preferences and expected competitor responses,and then computes a target cost.

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Definitions:

Mixers

Devices used for mixing components; in an economic context, could refer to firms or gadgets blending products in the market.

Range of Output

The difference between the maximum and minimum quantities of a product that a company can produce or sell over a certain period.

Diseconomies of Scale

The scenario where a company or firm experiences an increase in marginal costs when output is increased.

Long-Run Average Cost

The average cost per unit of output when all inputs, including physical capital, are variable in the long term.