Which of the following statements is true about the factors that affect pricing decisions?
A) Information about competitors' technologies is not useful for pricing decisions.
B) Information about a competitor in a perfect market affects pricing decisions.
C) Increase in price of a substitute product does not affect pricing decisions.
D) Fluctuations in exchange rates between different countries' currencies affect pricing decisions.

Question

Quizplus · Accepted Answer

Fluctuations in exchange rates can affect the pricing decisions of companies that operate in multiple countries, as changes in rates can affect the cost of goods and services, as well as profits and margins. Therefore, it is important for companies to consider exchange rate fluctuations when making pricing decisions. Option A is incorrect because information about competitors' technologies can be useful for pricing decisions, as it may impact the perceived value of a product or service. Option B is partially correct, as information about a competitor in a perfect market can affect pricing decisions, but this is true for any market, not just perfect ones. Option C is incorrect, as an increase in the price of a substitute product can lead to changes in the demand for a product, which can impact pricing decisions.

Which of the Following Statements Is True About the Factors