Because prices are easy to measure and the fact that there is a floor under which they can fall in the long run, what is the basis for most price determination?
A) Compendium expenditure
B) Marketing and advertising relationship
C) Global expansion
D) Costs

Question

Quizplus · Accepted Answer

Prices are often based on costs, as businesses need to cover their costs to make a profit. This includes the cost of producing or acquiring the product, as well as overhead costs such as rent and salaries. While marketing and global expansion can also play a role in pricing, ultimately businesses need to ensure that their prices are high enough to cover their costs in order to stay in business.

Because Prices Are Easy to Measure and the Fact That