The price increasing technique in which companies with long lead times, do not set price until product is finished is classified as _____________?

Correct answer: C. delayed quotation pricing

  • A. reduction of discounts
  • B. unbundling
  • C. delayed quotation pricing
  • D. escalator clauses

Explanation

Delayed quotation pricing means the seller postpones fixing the price until the product is completed, which protects against cost changes during a long lead time. An escalator clause raises an already stated price according to specified cost or inflation changes.

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