Long-run pricing decisions:
A)and short-run pricing decisions generally have the same relevant costs.
B)have a time horizon of less than one year.
C)include adjusting product mix in a competitive environment.
D)use prices that include a reasonable return on investment.

Question

Quizplus · Accepted Answer

Long-run pricing decisions involve considering the costs that are relevant over the longer term, including a reasonable return on investment. Short-run pricing decisions may have different relevant costs, such as immediate changes in supply and demand or the need to clear excess inventory. Adjusting product mix in a competitive environment can be a part of both short-run and long-run pricing decisions.

Long-Run Pricing Decisions