Pricing is difficult because various products have related demand and costs, and producers face different degrees of competition.

Question

Quizplus · Accepted Answer

Pricing decisions are influenced by various factors like demand for the product, costs involved in producing it, and the level of competition in the market. These factors are interrelated and affect the pricing strategy chosen by producers. Hence, pricing is a challenging task for businesses.

Pricing Is Difficult Because Various Products Have Related Demand and Costs