With profit-oriented approaches to pricing,a price setter may choose to balance both _________ and _________ to set price.
A)revenue; profit
B)tangible goods; service
C)cost; revenue
D)demand; supply
E)cost; demand

Question

Quizplus · Accepted Answer

With profit-oriented approaches to pricing, a price setter aims to balance the cost of producing a product or service with the revenue generated by selling it. Therefore, the best choice is C - cost and revenue - since this option directly addresses the factors the price setter needs to balance to ensure profitability. A and E are incorrect because they only address one side of the equation (either revenue or cost). B is incorrect because it makes a distinction between tangible goods and services, which is irrelevant to the pricing decision. D is incorrect because it refers to factors that are external to the company, rather than internal factors that the price setter can directly control.

With Profit-Oriented Approaches to Pricing,a Price Setter May Choose to Balance