The Average Price Xerox Charged When It Introduced the First

question 25

Multiple Choice

The average price Xerox charged when it introduced the first stand-alone fax machine was $12,700.This premium price was a way for Xerox to recoup some of the research and development costs that went into producing this machine.Xerox used ________.

• A)skimming pricing
• B)penetration pricing
• C)prestige pricing
• D)price-quality inference pricing
• E)trial pricing

---

Definitions:

Paid Wages

Refer to the sum of money paid to employees as compensation for their labor, including salaries, hourly wages, and commissions.

Accounting Equation

The fundamental formula in accounting that represents the relationship between a company's assets, liabilities, and shareholders' equity: Assets = Liabilities + Equity.

Investment Of Land

The act of spending money to purchase land as an investment, with the expectation that it will appreciate in value.

Accounting Equation

The foundational principle of accounting stating that Assets = Liabilities + Owner’s Equity, representing the structure of a balance sheet.