Prices are called "administered" when:
A) they are determined through negotiations between buyers and sellers.
B) they fall below the "suggested list price."
C) a marketing manager has to change the strategy every time a customer asks about the price.
D) government intervenes to ensure that prices fluctuate freely in response to market forces.
E) firms set their own prices for some period of time-rather than letting daily market forces determine their prices.

Question

Quizplus · Accepted Answer

Administered prices refer to prices that are set by firms themselves for a certain period of time, rather than being determined solely by market forces. This type of pricing strategy is commonly used in industries with high levels of competition or where firms have a degree of market power. Examples of administered prices include pricing strategies such as skimming or penetration pricing, as well as setting prices based on cost-plus or target profit margins.

Prices Are Called "Administered" When