Which one of the following activities would most likely be considered a long-run pricing decision?
A) one-time-only special order pricing that would result in achieving the break-even point
B) product mix adjustments in a competitive market
C) setting prices to generate a reasonable rate of return on investment
D) changing prices in response to weak demand

Question

Quizplus · Accepted Answer

Setting prices to generate a reasonable rate of return on investment is a long-run pricing decision as it involves analyzing and adjusting prices over a longer period to ensure that the organization is earning a reasonable return on investment, rather than just focusing on short-term gains. A one-time-only special order pricing decision, product mix adjustments, and changing prices in response to weak demand are short-term pricing decisions.

Which One of the Following Activities Would Most Likely Be