Which of the following statements about pricing is true?
A) pricing for products sold to the federal government can be priced to include all costs of the product including marketing costs
B) companies that sell commodity-like items usually use the cost-plus approach to pricing
C) companies in competitive markets use the market approach to pricing
D) regulators will intervene in noncompetitive industries and markets but usually will not regulate company pricing policies in competitive industries

Question

Quizplus · Accepted Answer

Companies in competitive markets use the market approach to pricing. This approach involves setting prices based on market conditions and the prices charged by competitors, rather than just the cost of producing the product. This helps companies stay competitive and adjust prices as needed to remain profitable. Option A is incorrect because marketing costs cannot be included in pricing for products sold to the federal government. Option B is incorrect because the cost-plus approach is usually used for products that are unique or specialized, not commodity-like items. Option D is incorrect because regulators may intervene in both noncompetitive and competitive industries if they suspect anti-competitive practices or price fixing.

Which of the Following Statements About Pricing Is True