Knowing the cost of producing a product helps determine the price to be charged for it

Question

Quizplus · Accepted Answer

Knowing the cost of producing a product is crucial in determining the price to be charged for it. If the production cost is high, the selling price must be higher than the production cost to make a profit. On the other hand, if the cost of production is low, a lower selling price can be set to attract customers while still making a profit. Therefore, understanding the cost of production helps in determining the most reasonable and profitable price to charge for a product.

Knowing the Cost of Producing a Product Helps Determine the Price