A firm can price its items at the same price as competitors, or try to sell its products at a price higher than its competitors. To sell at a price higher than the competition, a firm would need to:
A) enhance features or otherwise differentiate its product and justify the higher price.
B) reduce the production costs so the profit margin would be higher.
C) make sure its price end in a ".99."
D) be willing to lose money on that product line.

Question

Quizplus · Accepted Answer

To sell at a price higher than the competition, a firm needs to enhance features or differentiate its product to justify the higher price to consumers.

A Firm Can Price Its Items at the Same Price