Which of the Following Is True of Long-Run Pricing

question 123

Multiple Choice

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

• A) It is fixed at a level that recovers the variable cost of the company and a pre-determined profit markup.
• B) It is generally a function of the market factors and the cost involved in production is generally not a consideration.
• C) It is a strategic decision designed to build long-run relationships with customers based on stable and predictable prices.
• D) It is based only on internal requirements like cost and estimated rate of return as in the long run these requirements are the driving factors of any organization.

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Definitions:

Idealized Prototype

An idealized prototype is a cognitive representation of what is considered the most typical and highly valued example of a certain category.

Bottom-up Processing

A cognitive process by which we analyze basic details first before constructing a higher level of perception.

Deep Structure Elaboration

A concept in cognitive psychology suggesting a detailed and profound processing of information, leading to better understanding and retention.

Surface Structure

In linguistics, it refers to the literal arrangement of words in a sentence, as opposed to the deeper, abstract meaning.