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:

Ascending Aorta

Part of the aorta from which the coronary arteries arise.

Coronary Arteries

Major blood vessels that supply the heart muscle (myocardium) with oxygenated blood and nutrients.

Brachiocephalic Arteries

Major blood vessels originating from the aortic arch that supply blood to the right arm and the head and neck.

Tunica Intima

The innermost layer of an artery or vein, consisting of a thin layer of endothelial cells that line the interior surface of the vessel.