Regarding geographic pricing policies,
A)uniform delivered pricing tends to decrease the size of a firm's market.
B)F.O.B.pricing tends to increase the size of a firm's market.
C)freight absorption pricing tends to increase the size of a firm's market.
D)zone pricing encourages large orders.
E)None of these alternatives is correct.

Question

Quizplus · Accepted Answer

Freight-absorption pricing amounts to cutting list price to appeal to new market segment. This leads to an increase in the total size of its market.

Regarding Geographic Pricing Policies