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- Question 8 Which of the following is most likely to require pricing at parity with competitors? O real estate college tuition breakfast cereal O jewleryQ3) Pricing in practice are influenced by the following, except a. customer demand b. competitor's action c. predatory pricing d. discretionary pricingQUESTION 2 Using the Areeda-Turner test, a competition authority risks making a type II error, that is, not prosecuting predatory pricing when the dominant firm prices above costs. O True O False
- QUESTION 10 An Italian leather goods company that makes high-end shoes and belts is expanding its product line to include leather handbags. The firm hired consultants to conduct market research and determine the VTC for a popular handbag. The consultants established that this handbag's VTC was $1,200. The handbag has variable costs of $350. If the firm uses a skimming strategy, which of the following would be most likely to be the handbag's selling price? O $1,350 O $700 $675 O $1,100 O $450QUESTION 1. The CEO of Talk Ltd, Ms Andi, has made an observation about the pricing of products and seeks youradvice as the organisations Management Accountant. Ms Andi has noticed that despite three steepprice increases to products over the last 12 months, customers have not been deterred and sales arestronger than ever before. Explain to the CEO Ms Andi why this could be the case.QUESTION S Why is a fitness studio more likely to price discriminate than a grocery store? OA service cannot be resold, whereas food can be resold O A fitness studio does not have market power, but a grocery store is likely to have market power O A fitness studio has more fixed costs and fewer variable costs, whereas a grocery store has fewer fixed costs and more variable costs A fitness studio cannot find characteristics of consumers that correspond with their willingness to pay, but a grocery store can QUESTION 6 A patent is an example of O a unique cost advantage O a government created barrier to entry O customer lock in O entry deterrence
- A price skimming strategy is most often used for a new product when: Question 43 options: a) its supply is greater than its demand. b) competition in the market is abundant. c) customers are unwilling to spend a large amount of money on the product. d) the product is perceived by the target market as having unique advantages.Q: What is breakeven point? How is it calculated? for products.Question 6 SHOW YOUR WORKINGS FOR EACH SECTION a) You've been approached by a friend who has sought your advice about pricing products for his video production business. He indicated that he has several new products ready to be launched and wants to review the prices of existing products. Product Required: Prepare a response to answer your friend's queries. Provide specific guidelines that he can follow. Include examples in your answer. ANSWER a): b) Chocfee Dairy Ltd gathered this data for two of its Current Sales Additional Processing Value Coffee beans 000 Sales Value if Costs $ 8.000 products that it produces: Chocolate malt $ 5 000 000 Processed Further $ 3.000 $ 2 000 Required: Which of the products should be processed further? ANSWER b): $10 $7
- Question 24 Which of the following is a match between the type of supply chain and the type of product? Group of answer choices Market responsive and innovative Market-responsive and functional Physically efficient and innovative Market-responsive and flexible1. Product situation: Personal selling is relatively more effective and economical in case:Q: Write the methods for determining pricing of new products?