On rare occasions, pricing at less than total cost can be used as a special short-term strategy.

Name: On rare occasions, pricing at less than total cost can be used as a special short-term strategy.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Pricing below total cost for a short period of time can be used as a special strategy, for example, to clear out excess inventory or to attract new customers. However, it should not be a long-term pricing strategy as it is not sustainable and can harm the overall profitability of the business.

On Rare Occasions, Pricing at Less Than Total Cost Can