The fair price for the Merrill Microwaves,manufactured by Merrill Inc. ,is considerably higher than its actual price of $140.Merrill Microwaves have a relative performance rating of 125.According to this data,Merrill Microwaves provides ________.
A)lower-quality products at higher prices
B)superior-quality products at higher prices
C)products with very high life-cycle cost
D)relatively lower value to the customers when compared to an average relative performance rating
E)a very good value for customers,but it may be underpricing the product

Question

Quizplus · Accepted Answer

The relative performance rating of 125 suggests that Merrill Microwaves are of superior quality (since 100 would be average), and the statement that the fair price is considerably higher than its actual price of $140 indicates that customers are getting a very good value. This implies that the product may be underpriced.

The Fair Price for the Merrill Microwaves,manufactured by Merrill Inc