If General Motors Determines That It Wants to Sell 200,000

question 27

Multiple Choice

If General Motors determines that it wants to sell 200,000 Chevrolet Acadias and sets the price at $29,500 because it knows that at that price it will reach that goal, the firm would be using a ____ pricing method.

• A) cost-plus
• B) competition-based
• C) psychological
• D) comparison
• E) demand-based

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Definitions:

Commodity Futures Contract

A standardized contract to buy or sell a particular commodity at a predetermined price at a specified time in the future.

Call Option

An agreement granting the buyer the option to purchase an asset at a predetermined price until the option expires, providing potential profit opportunities from price increases.

Financial Assets

Tangible or intangible assets held for economic benefits in the form of investments, cash, stocks, bonds, and real estate.