A One Price Policy

question 187

Multiple Choice

A one price policy:

• A) means offering the same price on all its products irrespective of the manufacturing, designing, and marketing costs.
• B) means offering the same price to all customers who purchase products under the same conditions and in the same quantities.
• C) means offering the same price to customers, but the price depends on the store which is selling the product.
• D) means offering the same price to distributors, retailers, and customers.
• E) means equating price with the per-unit cost of production.

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Sod

A layer of earth in which the roots of grass are embedded, commonly used for lawns, golf courses, and sports fields to quickly establish a green surface.

Marginal Costs

The expense incurred from the production of one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, representing the cost per unit of output.