Product costs set a(n)________ to a product's price.
A)demand curve
B)experience curve
C)floor
D)ceiling
E)break-even cost

Question

Quizplus · Accepted Answer

Product costs set a floor to a product's price, meaning that the price cannot go below the cost of producing the product without incurring losses. The demand curve and experience curve may inform pricing decisions, but they do not directly set a limit to a product's price. The ceiling is the upper limit to which a price can be set based on factors such as competition and consumer willingness to pay. The break-even cost is the minimum revenue required to cover all costs and is not directly tied to setting a price.

Product Costs Set A(n)________ to a Product's Price