Market-based prices are least likely to be influenced by:
A)The degree of product differentiation in the industry.
B)The level of competition in the industry.
C)The cost to manufacture the product or service.
D)If the product is a commodity.

Question

Quizplus · Accepted Answer

Market-based prices are determined by the level of supply and demand in the market, which is independent of the cost to manufacture the product. Thus, C is the correct answer as it is not likely to have a direct effect on the market-based price. A, B, and D are all factors that can influence the market-based price.

Market-Based Prices Are Least Likely to Be Influenced By