Pricing constraints are:
A)barriers that must be overcome in order to set pricing objectives.
B)competitive pricing advantages one firm has over another.
C)different pricing strategies for each of the firm's products.
D)factors that limit the latitude of prices a firm may set.

Question

Quizplus · Accepted Answer

Pricing constraints are factors that limit the latitude of prices a firm may set, such as production costs, competitors' prices, consumer demand, and market conditions. These constraints can prevent a firm from setting high prices that would lead to low sales, or setting low prices that would lead to profit loss. Therefore, pricing constraints must be considered when setting pricing objectives and strategies.

Pricing Constraints Are