Average-Cost Pricing

question 260

Multiple Choice

Average-cost pricing:

• A) May be very profitable if actual sales are higher than expected.
• B) May lose money for the firm if actual sales are less than expected.
• C) Does not take demand into account in setting prices.
• D) Is simple in theory but often fails in practice.
• E) All of the above.

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Definitions:

Physiological

Pertaining to the branch of biology that deals with the normal functions of living organisms and their parts, including the physical and chemical processes involved.

Self-Actualisation

The achievement of realizing one's abilities and potential, viewed as an innate motivation or necessity in all individuals.

Deficit Principle

A concept indicating that the less frequently a reward is available or the less a need is satisfied, the more value or desirability that reward or satisfaction of the need has.

Self-Actualisation Needs

The highest level in Maslow's hierarchy of needs, representing the fulfillment of one's potential and the realization of one's abilities and talents.