Freight absorption pricing
A)amounts to cutting list price to appeal to new geographic markets.
B)forces all buyers to pay higher shipping costs.
C)tends to restrict firms from competing in distant markets.
D)tends to decrease competition.
E)None of these answers is correct.

Question

Quizplus · Accepted Answer

Freight-absorption pricing means absorbing freight cost so that a firm's delivered price meets that of the nearest competitor.This amounts to cutting list price to appeal to new market segments.

Freight Absorption Pricing