________ is setting the price steps between various products in a product the based on cost difference between the products, customer evaluations of different features, and competitors prices ?
Correct answer: C. Product line pricing
- A. Optional-product pricing
- B. Captive-product pricing
- C. Product line pricing
- D. By-product pricing
Explanation
Product line pricing sets different prices within a related product range by considering cost differences, customer-perceived value, and competitors’ prices. Optional-product pricing concerns add-ons, while captive-product pricing concerns necessary complementary products.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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