Chapter 11 - Price

True or False: Premium pricing is no longer used by retailers, who have turned to cost-plus pricing instead due to consumers' interest in finding the best deals on products.

false

True or False: Price fixing is an approach in which the price of a product is set so as to make a profit based on the manufacturing cost of the product.

false

True or False: Price gouging is seen as unethical, but no states have laws in place against the practice of price gouging.

false

In this approach, a high price is set for a product upon its release and then the price of the product is lowered over time.

Price skimming

Which of the following is not a pricing strategy presented in the chapter?

Product directive

According to Business Dictionary, this act is "meant to further promote competition in U.S. businesses and discourage the formation of monopolies."

The Federal Trade Commission Act

According to the chapter, each of this law's three sections deals with anticompetition.

The Sherman Act

According to the chapter, these tools are used to start services, purchase tickets, and make payments.

The sense that a customer has of how much a product is worth

True or False: Bid rigging is manipulation of a bidding process that involves multiple bidders creating a partnership to direct the outcome of the bid.

true

True or False: The profit margin is the financial gain from a sale after the costs of providing the sold product have been deducted.

true