If a Service Firm Sets a Specific Price for Each

question 197

Multiple Choice

If a service firm sets a specific price for each possible job-rather than setting a price which applies for all potential customers-it is most likely using:

• A) product-bundle pricing.
• B) a one-price policy.
• C) price lining.
• D) average-cost pricing.
• E) bid pricing.

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Definitions:

Fiat Currency

A currency that the government has declared to be legal tender but is not backed by any physical commodity.

Legal Tender

Legal tender is currency that must be accepted if offered in payment of a debt; typically issued and regulated by a government.

Physical Commodity

Tangible goods that are traded, often used as inputs in the production of other goods or services, such as oil, gold, or wheat.

Precious Metal

A classification for metals that are considered rare and have a high economic value, such as gold, silver, and platinum.