Asked by Austin Vaughn on Jun 25, 2024
Verified
Which of the following statements regarding price is/are true?
i. Prices are determined by the market, subject to the constraint that costs must be covered in the long run.
ii. Prices are based on costs, subject to the constraint that customers and competitors will exert an influence.
ii. A balance of market forces and cost is important when making pricing decisions.
A) i
B) ii
C) ii and iii
D) All of the given answers
Market Forces
Natural economic factors that influence supply, demand, and prices within a marketplace, shaping business dynamics.
Prices
The amount of money required to purchase goods or services, typically determined by factors such as demand, supply, and production cost.
- Absorb the essential elements of pricing models and strategies.
- Understand the linkage between price levels, consumer demand, and quantities sold.
Verified Answer
KH
Kendall HornungJun 26, 2024
Final Answer :
D
Explanation :
All statements are true regarding price. Prices are influenced by market forces, costs, customer expectations, and competitor pricing, requiring a balance of these factors for effective pricing decisions.
Learning Objectives
- Absorb the essential elements of pricing models and strategies.
- Understand the linkage between price levels, consumer demand, and quantities sold.