Small business owners get into trouble when determining their price floor when they:
A)focus on what the customer will pay.
B)assume their costs are the same as their competitors'.
C)begin to track financial ratios to determine what they are doing.
D)use the price floor as the minimum price in their acceptable price range.

Question

Quizplus · Accepted Answer

Assuming costs are the same as competitors' can lead to trouble because each business has unique costs. Setting prices based on incorrect cost assumptions can result in losses or reduced profitability.

Small Business Owners Get into Trouble When Determining Their Price