Which of the following is most likely to be a reason for a firm to price a product above competition?
A)The firm is selling a homogenous product.
B)The demand for the firm's product is price elastic.
C)The firm is a price leader in the industry.
D)The firm's product is inferior in comparison to its counterparts.

Question

Quizplus · Accepted Answer

If the firm is a price leader in the industry, there is a perception among consumers that the firm's product is of higher quality compared to competition. This allows the firm to price its product above competition without losing customers.

Which of the Following Is Most Likely to Be a Reason