The use of price points for reference to different levels of quality for a company's related products is typical of which product mix pricing strategy ?
Correct answer: D. Product line pricing
- A. Optional-product pricing
- B. Captive-product pricing
- C. By-product pricing
- D. Product line pricing
Explanation
Product line pricing sets different price points for related products that represent different quality or feature levels. 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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