In a noncompetitive environment, the key factor affecting pricing decisions is the ________.
A) customer's willingness to pay
B) price charged for alternative products
C) information on competitor's cost structure
D) minimum price acceptable to the firm

Question

Quizplus · Accepted Answer

In a noncompetitive environment, there are no direct competitors, so the factor affecting pricing decisions is the customer's willingness to pay, which is the amount they are willing to pay for a product or service. The firm can set the price according to what the customer is willing to pay and can generate maximum profit without any price competition.

In a Noncompetitive Environment, the Key Factor Affecting Pricing Decisions