The cost of producing a product:
A)in highly competitive markets controls pricing
B)affects the willingness of a company to supply a product
C)for pricing decisions includes manufacturing costs, but not product design costs
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

The cost of producing a product affects the willingness of a company to supply a product because it impacts profitability. If production costs are too high, a company may be less willing to supply the product unless it can charge a price that covers these costs and provides a profit.

The Cost of Producing a Product