Which one of the following activities would most likely be considered a long-run pricing decision?
A) one-time-only special order pricing
B) product mix adjustments in a competitive market
C) setting prices to generate a reasonable rate of return on investment
D) changing prices in response to weak demand

Question

Quizplus · Accepted Answer

Setting prices to generate a reasonable rate of return on investment is a long-run pricing decision as it involves considering the costs of production, investments made, and expected profits over an extended period. It is a strategic pricing decision that impacts the overall profitability of the business, and changes to pricing in the short-run may not have a significant impact on long-term returns. The other options are more focused on short-term pricing decisions.

Which One of the Following Activities Would Most Likely Be