Long-run pricing decisions ________.
A) have a time horizon of less than one year
B) include adjusting product mix in a competitive environment
C) and short-run pricing decisions generally have the same relevant costs
D) use prices that include a reasonable return on investment

Question

Quizplus · Accepted Answer

Long-run pricing decisions involve setting prices that enable the company to generate a reasonable return on investment over a period of several years. This differs from short-run pricing decisions, which are focused on immediate revenue generation and may not take into account the long-term profitability of the company. Long-run pricing decisions also involve considerations such as competition, customer demand, and product mix, but the key factor is setting prices that will support the company's long-term financial goals.

Long-Run Pricing Decisions ________