Question

In which type of pricing is the selling price based on an estimate of volume or quantity a firm can sell in different markets at different prices?

A) capacity management
B) target costing
C) demand-based
D) penetration
E) distribution-based

Answer 1

The type of pricing in which the selling price is based on an estimate of volume or quantity a firm can sell in different markets at different prices is demand-based pricing. Option C.

Step-by-step explanation:

In the given scenario, the type of pricing in which the selling price is based on an estimate of volume or quantity a firm can sell in different markets at different prices is demand-based pricing.

In demand-based pricing, the price is determined by analyzing the demand for the product and setting different prices based on the estimated volume or quantity that can be sold in each market.

For example, if a firm can sell a large volume in one market at a higher price and a smaller volume in another market at a lower price, it would set different prices in each market based on the estimated demand.

So Option C is correct.