Critical Assumption When Using Target Profit Pricing Is That

question 305

Multiple Choice

critical assumption when using target profit pricing is that

• A) a higher average price will not cause the demand for a product to fall.
• B) a higher average price will cause the demand for a product to rise.
• C) a higher average price will always cause the demand for a product to fall.
• D) this form of pricing is extremely risky because profit is tied to the current value of the dollar.
• E) being first is essential if you increase your average price since all of your competitors will do the same.

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Definitions:

Family Norms

Established expectations and behaviors considered typical or acceptable within a family unit.

Family Life Cycle

A concept in family dynamics that describes the progression of stages a family goes through from formation to dissolution.

Indifference

A lack of interest, concern, or sympathy towards situations or matters.