ZuoTi.Pro
Question

Which of the following is an approach to​ long-run pricing​ decisions? A. Opportunistic​ pricing, which is...

Which of the following is an approach to​ long-run pricing​ decisions?

A.

Opportunistic​ pricing, which is based on demand and competition. Prices are decreased when demand is weak and

competition is strong and increased when demand is strong and competition is weak.

B.

​Cost-based pricing, which​ asks, "What does it cost us to make this product​ and, hence, what price should we charge that will recoup our costs and achieve a target return on​ investment?"

C.

​Market-based pricing, an important form of which is target pricing. The​ market-based approach​ asks, "Given what our customers want and how our competitors will react to what we​ do, what price should we​ charge?"

D.

Both B and C are correct.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Ans D

Both Band C are the approach for the long run price ing decision.

Pricing is a decision area which draws together contributions from. the theories of demand, cost and market structure. The pricing. decision has been the major focus of economic theory in the analysis. of resource allocation, but its position in managerial economics is.

0 0
Add a comment
Know the answer?
Add Answer to:
Which of the following is an approach to​ long-run pricing​ decisions? A. Opportunistic​ pricing, which is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Which of the following statements is true about the factors that affect pricing decisions? Select one:...

    Which of the following statements is true about the factors that affect pricing decisions? Select one: a. Information about competitors' technologies is not useful for pricing decisions. b. Information about a competitor in a perfect market affects pricing decisions. c. Increase in price of a substitute product does not affect pricing decisions. d. Managers must always be aware of the competition when pricing their products

  • Decisions on the price to bid on a one−time−only special order should include A. existing fixed...

    Decisions on the price to bid on a one−time−only special order should include A. existing fixed manufacturing overhead. B. cost​ data, and the use of variable costing income statements. C.only the potential bids of competitors. D.cost data and potential bids of competitors. E. only cost data Which of the following is TRUE of alternative long−run pricing​ approaches? A. market−based approach only considers how customers will react. B. A cost−based approach only considers how customers will react. C. A market−based approach...

  • D. Time-and-Material Pricing. 1. Under time-and-material pricing, the company sets two pricing rates a) i. ii....

    D. Time-and-Material Pricing. 1. Under time-and-material pricing, the company sets two pricing rates a) i. ii. b) i. 2. Using time-and-material pricing involves three steps: a. b. c. 4. The charge for labor time is expressed as a rate per labor hour which includes: a b. c. 5. The charge for materials typically includes a material loading charge which covers the costs of: a. b. c. d. e. 6. The material loading charge is expressed as a percentage of the...

  • Pricing and Margin Pricing is one of the most complex decisions in marketing because it requires...

    Pricing and Margin Pricing is one of the most complex decisions in marketing because it requires balancing multina objectives, including cost/margin, positioning in the mind of the consumer, impact on channel/distribution partners, and competition. This assignment is designed to illustrate the effects of the pricing decision in these different contexts. What is the role of MSRP in your pricing decision? For each brand in the following table, calculate the manufacturer's selling price (MSP), the per unit margin, and the gross...

  • Question 11 (1 point) Which of the following is correct regarding the market pricing method of...

    Question 11 (1 point) Which of the following is correct regarding the market pricing method of price setting? A key consideration when doing market pricing is to determine what percent above cost the price will be. The market pricing method is often ineffective for new technology products where customers lack understanding of the product. Market pricing relies on evaluating what competitors are charging in the market in order to set price. Break-even pricing falls within the market pricing method.

  • 1. How is​ activity-based costing useful for pricing​ decisions? A. It helps managers to manage costs...

    1. How is​ activity-based costing useful for pricing​ decisions? A. It helps managers to manage costs during value engineering by identifying the cost impact of​ eliminating, reducing, or changing various activities. B. It gives managers more accurate​ product-cost information for making pricing decisions. C. It allows managers to focus on​ locked-in costs,​ that, if eliminated would not reduce the actual value or utility customers gain from using the product or service. D. Both A and B are correct. 2. What...

  • Ken: Thanks for coming everyone. This is our price setting meeting for the launch of the...

    Ken: Thanks for coming everyone. This is our price setting meeting for the launch of the new K-J Game Box next year. By way of background, on average our competitors have a unit cost of around $50. When they first launched, they sold the units to retailers at around $350, hence a $300 margin. The retailers then sold the product to their customers at around $700. And, as we know, those same competitive products are now sold into retailers at...

  • 7.)management accounts shiuod inly consider incremental costs when making long-run pricing decisions. True or False 10.)price...

    7.)management accounts shiuod inly consider incremental costs when making long-run pricing decisions. True or False 10.)price discrimination is a potential concern that managment should consider when accepting special projects. True or False

  • Which of the following statements about behavior pricing is FALSE? A) It is a classical pricing...

    Which of the following statements about behavior pricing is FALSE? A) It is a classical pricing approach based on a rigorous value assessment on customers’ willingness to pay. B) It emphasizes the effects of psychological, social, cognitive, and emotional factors on the customers’ decision making. C) It argues that firms’ pricing strategy should focus on how to enlarge the range of a price acceptance. D) It is a realistic pricing approach reflecting a customer’s irrational behavior and dynamics in the...

  • 1- Center of excellence contracting represents which of the following strategies? A. A market penetration approach...

    1- Center of excellence contracting represents which of the following strategies? A. A market penetration approach B. An active pricing strategy C. A discounting approach D. A flexible pricing approach 2- True or False? A market-share pricing objective is often used when a firm needs to reach an economy-of-scale point. 3- True or False? When a health system implements a narrow network plan to insure consumers, the system is using a market-share pricing objective. 4- True or False? When buyers...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT