Which of the Following Statements About a Dynamic Pricing Policy

question 411

Multiple Choice

Which of the following statements about a dynamic pricing policy is most accurate?

• A)A dynamic pricing policy is especially suited to low cost items where profit margins are slim.
• B)A dynamic pricing policy should not be used with large ticket items such as cars or real estate.
• C)When using a dynamic pricing policy,the seller may risk violating the Robinson-Patman Act.
• D)Dynamic pricing is not a form of yield management pricing.
• E)Dynamic pricing is rarely used for online purchases because of the high cost to develop information technology and data warehouses.

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Definitions:

Financial Position

A snapshot of a company's assets, liabilities, and equity at a specific point in time, indicating the financial health of the business.

Statement Of Comprehensive Income

A financial statement that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its annual interest expenses.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a given point in time, showing its economic situation.