The Practice of Setting (Usually)three Price Points: Good,better and Best

question 76

Multiple Choice

The practice of setting (usually) three price points: good,better and best quality refers to which of the following?

• A)Captive pricing
• B)Partitioned pricing
• C)Price lining
• D)Breakeven point pricing

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Definitions:

Manufacturing Plant

A facility where goods are produced or assembled through a combination of human labor, machinery, and technological processes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at various prices.

Cost Function

A mathematical representation that describes how the costs incurred by a firm relate to its level of output or production.

Cartel Arrangement

An agreement among competing firms to control prices or exclude entry of new competitors in a market, often to maximize their profits illegally.