BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Apple, Inc. only considers the additional costs to sell computers to Spain. They are using which pricing method?
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Cost plus method
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Marginal cost method
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Purchasing parity method
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Competitive price method
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Explanation:
Detailed explanation-1: -This allows the company to recover its research and development costs and expenses. This is usually accompanied by intense expensive advertising and promotional campaigns. 2. Penetration pricing-a pricing strategy where the new products is priced only marginally above its unit cost.
Detailed explanation-2: -Disadvantages of marginal cost pricing.-not easy to classify some costs as direct or indirect.
Detailed explanation-3: -Graphically, an increase in demand is represented by a rightward shift of the demand curve, while a decrease in demand is represented by a leftward shift of the demand curve. results in increased scarcity and inefficiency in the production of a good or service.
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