Which of the following influences should not be considered in short-run pricing decisions?
A)The value customers place on the product
B)The pricing strategies of competitors
C)The costs of the product
D)Total fixed costs allocated to the specific product

Question

Quizplus · Accepted Answer

Total fixed costs allocated to the specific product should not be considered in short-run pricing decisions because fixed costs do not change with the level of production or sales in the short run. Pricing decisions should focus on variable costs and other factors that are directly affected by the production and sale of additional units.

Which of the Following Influences Should Not Be Considered in Short-Run