Multiple Choice
A critical assumption when using target profit pricing is that
A) a higher average price will not cause the demand for a product to fall.
B) a higher average price will cause new competitors to join the industry.
C) a higher average price will be offset by reductions in manufacturing costs.
D) profit is tied to the current value of the dollar in relation to foreign currencies.
E) any price increase will be followed quickly by similar moves from all of your competitors.
Correct Answer:
Verified
Correct Answer:
Verified
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