Due to cost-based pricing, an organization or industry can price its products below their production costs indefinitely.

Question

Quizplus · Accepted Answer

Cost-based pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. Pricing products below their production costs indefinitely is unsustainable as it would lead to financial losses and is not a viable long-term business strategy.

Due to Cost-Based Pricing, an Organization or Industry Can Price