In conducting a break-even analysis, it is important for the entrepreneur to realize that demand for a product always decreases as its price increases.

Question

Quizplus · Accepted Answer

This statement is false. Demand for a product may not always decrease as its price increases. In some cases, a higher price may actually increase demand due to factors such as perceived quality or exclusivity.

In Conducting a Break-Even Analysis, It Is Important for the Entrepreneur