Which of the following is true of alternative long-run pricing approaches?

Question

Quizplus · Accepted Answer

In a competitive market, it is more logical to use a market-based approach because it takes into account the reactions of customers as well as the costs of production. A cost-based approach only considers the costs of production, while a market-based approach considers both the costs and the demand for the product. Alternative long-run pricing approaches also include value-based pricing and dynamic pricing, but these are not options in this question. Option E is incorrect because cost-plus pricing takes market forces into account when setting the markup.

Which of the Following Is True of Alternative Long-Run Pricing