Market-Based Pricing Is a Pricing Method That

question 49

Multiple Choice

Market-based pricing is a pricing method that:

• A) is based on customer demand.
• B) attempts to identify what prices customers are willing to pay.
• C) allows managers to make better decisions about sales volumes.
• D) all of the options are true.

---

Definitions:

Total Revenue

Total Revenue, in a rephrased definition, represents the aggregate earnings a company receives from selling its products or services, before any expenses are subtracted.

Market Price

The going rate at which a particular market offers to buy or sell an asset or service.

Average Revenue

The revenue earned per unit of output sold; calculated by dividing the total revenue by the number of units sold.

Total Revenue

The total amount of money received by a firm from selling its goods or services.