Which of the Following Is True of Alternative Long-Run Pricing

question 4

Multiple Choice

Which of the following is true of alternative long-run pricing approaches?

• A) A market-based approach only considers how customers will react.
• B) A cost-based approach only considers how customers will react.
• C) A market-based approach only considers costs.
• D) A market-based approach is more logical in a competitive market.
• E) In cost-plus pricing, selling price ignores market forces when setting the markup.

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Definitions:

Doctor-Attended Hospital

A hospital where medical treatment and management are directly overseen by qualified doctors or physicians, ensuring professional healthcare services to patients.

American Dental Association

A professional organization that represents dentists in the United States and promotes dental health.

Medicare and Medicaid

Federal programs that provide health coverage in the United States; Medicare is for people over 65 or with certain disabilities, and Medicaid is for some low-income people, families, and children.