Which of the Following Statements Regarding Odd-Even Pricing Is Most

question 266

Multiple Choice

Which of the following statements regarding odd-even pricing is most accurate?

• A) Odd-even pricing is designed to give the consumer a better set of pricing alternatives.
• B) Odd-even pricing can be used in conjunction with a skimming strategy, but should not be used with a penetration strategy.
• C) Odd-even pricing does not work if the product is healthcare-related.
• D) Overuse of odd-ending prices tends to mute its effect on demand.
• E) Odd-ending prices are best used with large ticket items; it loses its effectiveness with moderate- to low-ticket items.

Understand the behavior of cost curves, including average and marginal cost relationships.

Comprehend how fixed and variable costs contribute to total cost.

Apply economic principles to determine profit-maximizing output levels.

Understand the concept of framing and its impact on decision making.