Which of the Following Statements Regarding Pricing Constraints Is MOST

question 160

Multiple Choice

Which of the following statements regarding pricing constraints is MOST ACCURATE?

• A)When a product is in the introductory stage of the product life cycle,there is very little latitude in setting the initial price since consumers still don't know what the product can really do.
• B)A company has more latitude in setting an initial price if the product is in the introductory stage of its life cycle.
• C)The greater the number of products in a company's product line,the less the product features of similar products can affect price.
• D)The newest addition to a company's product line should always have the highest price in order to maintain the value of existing brands.
• E)To avoid cannibalization,the newest product addition to a company's product line should never have a price lower than the other offerings in the line.

Grasp the concept of double taxation and its impact on different business entities.

Analyze the legal considerations and advantages associated with different business structures in specific scenarios.

Understand the basic elements and enforceability of contracts.

Comprehend the requirements and protections provided by different types of intellectual properties.

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Definitions:

Production Constraint

A limitation or bottleneck in a manufacturing process that affects the overall output.

Contribution Margin Ratios

The proportion of sales revenue that remains after variable costs are subtracted, indicating how well a company can cover fixed costs and generate profits.

Constrained Resource

A factor within a production or operation process that limits the overall output, such as limited machinery, labor, or materials.

Direct Labour-Hours

The total hours worked by employees directly involved in the manufacturing process, used as a basis for assigning labor costs to products.