The differential analysis approach to pricing for special orders could lead to under-pricing in the long-run because fixed costs are not included in the analysis.
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Q7: Peak load pricing is the practice of
Q8: With constrained resources,the important measure of profitability
Q9: Only variable costs can be differential costs.
Q10: The reason opportunity costs are not included
Q11: Price discrimination is the practice of selling
Q13: A decision must involve at least two
Q14: Target costs equal the difference between the
Q15: Dumping occurs when a company exports its
Q16: Fixed costs are always classified as sunk
Q17: Short-run decisions often have long-run implications.
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