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Terms in this set (93)
Question 1 (multiple choice)
Read the scenario.

George is 22 years old, single, and has just started his first job. He saves 5 percent of his monthly income for retirement. Kirsten is 30 years old and married with two children. She will start saving 6 percent of her income for retirement when she turns 35. Which person will have more money at age 65 if all other factors are the same?
This identifies the cost of the good or service. The company sets a price for the good or service by considering many factors beyond the profit it wants to make.

How much are people willing to pay?
Should this product be a "high end" product that costs more, or a "value" option that saves people money?