Demand-based pricing, unlike cost-based pricing, places firms in a better position to
A) attain higher profit levels.
B) estimate demand easily and accurately.
C) perform breakeven analysis.
D) calculate price based on intangible benefits.
E) penetrate the market quickly.

Question

Quizplus · Accepted Answer

Demand-based pricing allows firms to adjust prices according to the level of demand for their product or service, giving them the opportunity to charge more for highly demanded goods or services. This can result in higher profit levels for the firm compared to cost-based pricing, which only considers the production costs.

Demand-Based Pricing, Unlike Cost-Based Pricing, Places Firms in a Better