Suppose you are in charge of product pricing and marketing strategy for a pharmaceutical company. You will have greater ability to independently set prices for your product if:
A) there are no close substitutes for your product.
B) there are lots of other firms selling closely related products in your market.
C) your market is perfectly competitive.
D) none of the above

Question

Quizplus · Accepted Answer

If there are no close substitutes for your product, then customers will have limited options to turn to if they need the specific benefits your product provides. This means that the demand for your product will be less elastic, allowing for greater pricing power.

Suppose You Are in Charge of Product Pricing and Marketing