Which of the Following Statements Regarding Pricing Constraints Is Most

question 307

Multiple Choice

Which of the following statements regarding pricing constraints is most accurate?

• A) When a product is in the introductory stage of the product life cycle, there is very little latitude in setting the initial price since consumers still don't know what the product can really do.
• B) A company has more latitude in setting an initial price if the product is in the introductory stage of its life cycle and is the only product in the line.
• C) The greater the number of products in a company's product line, the less the product features of similar products can affect price.
• D) The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
• E) To avoid cannibalization, the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

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Definitions:

Sorting

The process by which sediment grains are selected and separated according to their size by agents of erosion or deposition.

Size Range

The spectrum or distribution of sizes for particles, objects, or phenomena, from the smallest to the largest.

Clasts

Pieces of rock or mineral fragments that are broken off from their parent source and are used in the creation of sedimentary rocks through the process of lithification.

Sedimentary Rocks

Rocks formed by the accumulation or deposition of mineral or organic particles at the Earth's surface, followed by compaction and cementation.