Which term describes factors that limit the range of prices a firm may set?
A)price fixtures
B)pricing constraints
C)price elasticities
D)pricing demands
E)pricing margins

Question

Quizplus · Accepted Answer

Pricing constraints refer to external factors such as competition, market demand, and production costs that restrict the range of prices a firm may set. The other options do not accurately describe these limitations. Price fixtures refer to established prices that cannot be changed, pricing elasticities refer to the responsiveness of demand to price changes, pricing demands refer to the desires of consumers, and pricing margins refer to the difference between cost and selling price.

Which Term Describes Factors That Limit the Range of Prices