What sets the floor for product prices?
A) consumer perceptions of the product's value
B) product costs
C) competitors' strategies
D) advertising budgets
E) market competition

Question

Quizplus · Accepted Answer

Product costs are the minimum amount that a business must charge for a product to cover its expenses and make a profit. Therefore, it sets the floor for product prices.

Answer: A, C, E 
 Consumer perceptions of the product's value, competitors' strategies, and market competition can all affect the price that a business can charge for a product. However, while these factors can influence pricing decisions, they do not necessarily set the floor for product prices.

What Sets the Floor for Product Prices