"Average-Cost Pricing

question 288

Multiple Choice

"Average-cost pricing":

• A) will result in losses if actual sales are much higher than expected.
• B) might cause a firm to charge too high or too low a price--and reduce its profits.
• C) usually assumes the firm will sell a larger quantity than the year before.
• D) cannot be profitable--because it ignores demand.
• E) All of the above.

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Definitions:

Cognitive Dissonance

The psychological unease felt by someone who simultaneously maintains two or more conflicting beliefs, ideas, or values.

Theory of Reasoned Action

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, considering attitudes toward the behavior and subjective norms.

Behavioral Control

involves the regulation of one's behavior, including the ability to start, maintain, or cease actions in accordance with one's goals and societal norms.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.