10 Questions
From the supplier's view, price - cost = profit. From the consumer's view, willingness to pay - price = gain.
True
What is the difference between cost-based pricing and value-based pricing?
Cost-based pricing considers the cost of production, while value-based pricing considers the perceived value to the customer.
What is the difference between static pricing and dynamic pricing?
Static pricing is when prices remain the same over time, while dynamic pricing is when prices change based on various factors.
What is the difference between transparent pricing and opaque pricing?
Transparent pricing is when prices are clearly visible and easily understood by customers, while opaque pricing is when prices are hidden or not easily understood.
What is rate parity in the context of pricing?
Rate parity refers to the equal pricing of a product across different distribution channels.
Which of the following is an example of a semi-fixed cost?
Tuition fee of a class
True or False: Fixed cost of a business is fixed and will never change.
False
What is the behavior of charging every guest a special rate called?
First degree price discrimination
Which of the following is NOT likely to be the opportunity cost of a student attending a class?
Two hours salary at Starbucks
What is the break-even point?
The point where total revenue equals total cost
Test your knowledge on the concepts of pricing, supply and demand curves, equilibrium, economic value, and different pricing strategies such as cost-based pricing, value-based pricing, static pricing, dynamic pricing, transparent pricing, and opaque pricing. Explore the concept of rate parity and its implications.
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