A Practical Approach Which Is Frequently Used by Managers When

question 131

Multiple Choice

A practical approach which is frequently used by managers when setting normal long-run prices is the:

• A) cost-plus approach
• B) economic theory approach
• C) price graph approach
• D) price skimming

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Definitions:

Checking Account

A bank account that allows for both deposits and withdrawals and is primarily used for daily transactions.

Contractual Agreement

A legally binding agreement between two or more parties, outlined in a document, that is enforceable by law.

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits in banks and thrift institutions for at least $250,000 per depositor, per bank.

Restrictive Indorsement

An endorsement on a negotiable instrument, like a check, that limits its use, such as specifying that the instrument must be deposited into a particular account.