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Kamila [148]
3 years ago
15

Companies using target costing ________. start with an ideal selling price and then target costs that will ensure that the price

is met avoid determining an ideal selling price until analyzing test market results tailor their products to be in line with the marketing mix routinely neglect customer value considerations first design a new product and then determine its cost
Business
1 answer:
Anika [276]3 years ago
8 0
<span>Companies using target costing start with an ideal selling price and then target costs that will ensure that the price is met.

Companies use this approach to make sure they are setting a projects price point at appropriately. They want to make sure it meets the standards the price point is set at by quality and functionality of the product being worth the money a customer will spend for it. They are able to design their profit margin and build the target costs and revenue around that.  </span>
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Economic efficiency requires that a natural monopoly's price be: Select one: A. equal to marginal cost where it intersects the d
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Answer: A. equal to marginal cost where it intersects the demand curve

Explanation:

In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.

In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.

The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.

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B. Environmental.

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c and e

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Answer: strategic techniques

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So, the correct answer is option B.

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