The value chain influences long-run pricing decisions because __________ cost is the total of all the costs incurred by the activities in the value chain.
A)differential
B)full
C)marginal
D)variable

Question

Quizplus · Accepted Answer

Full cost is the total cost incurred by all the activities in the value chain, including both direct and indirect costs. Therefore, long-run pricing decisions should take into account the full cost of the value chain to ensure that the pricing strategy is profitable and sustainable in the long term. This includes not only the direct costs of producing a product or providing a service, but also the indirect costs associated with activities such as research and development, marketing, and distribution.

The Value Chain Influences Long-Run Pricing Decisions Because __________ Cost