Which of the following statements concerning reference prices is FALSE?

A. Leader pricing is normally used with products for which consumers do not have a specific reference price.
B. Retailers sometimes want consumers to use the manufacturer's list price as the reference price even though their actual retail selling price is lower.
C. Different customers may have different reference prices for the same type of purchase.
D. A reference price is the price consumers expect to pay for an item.


Answer: A

Business

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Which of the following statements is CORRECT?

A. A 10-year, 10% coupon bond has less reinvestment rate risk than a 10-year, 5% coupon bond (assuming all else equal). B. The total return on a bond during a given year is the sum of the coupon interest payments received during the year and the change in the value of the bond from the beginning to the end of the year. C. The price of a 20-year, 10% bond is less sensitive to changes in interest rates than the price of a 5-year, 10% bond. D. A $1,000 bond with $100 annual interest payments that has 5 years to maturity and is not expected to default would sell at a discount if interest rates were below 9% and at a premium if interest rates were greater than 11%. E. 10-year, zero coupon bonds have higher reinvestment rate risk than 10-year, 10% coupon bonds.

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The following income statement is provided for Ramirez Company for the current year:     ?Sales revenue (2,500 units × $40 per unit)$100,000  ?Cost of sold (variable; 2,500 × units × $16 per unit) (40,000) ?Cost of goods sold (fixed) (8,000) ?Gross margin 52,000  ?Administrative salaries (12,000) ?Depreciation (8,000) ?Supplies (2,500 units × $4 per unit) (10,000) ?Net income$22,000  ?? What amount was the company's contribution margin?

A. $50,000 B. $52,000 C. $22,000 D. $60,000

Business

Which of the following is not true of parallel initiatives?

a. It recognizes that different things can be worked on simultaneously b. It can shrink the time required to complete a change c. It requires care and sophistication in planning d. It carries very little risk or chances for failure

Business

Queuing system operating statistics are constant over time

Indicate whether this statement is true or false.

Business