A company must price its product to cover its costs and earn a reasonable profit in
A) all cases.
B) its early years.
C) the long run.
D) the short run.

Question

Quizplus · Accepted Answer

Pricing should be set to cover costs and earn a reasonable profit in the long run. In the short run or early years, a company may need to price for survival, but ultimately pricing should be sustainable and profitable in the long term.

A Company Must Price Its Product to Cover Its Costs