At minimum, the price of a product or service
A) must cover the cost of bringing it to market
B) must demonstrate a substantial profit
C) must be at or below the competition
D) must be based exclusively on a break-even analysis

Question

Quizplus · Accepted Answer

The price of a product or service should at least cover the cost of bringing it to market, including production, marketing, and overhead expenses. Failure to cover these costs will result in a loss, making it unsustainable for the business. Profitability and competition may also be important factors to consider, but they should not come at the expense of covering the cost of production. Break-even analysis can be a useful tool, but it should not be the sole basis for determining the price of a product or service.

At Minimum, the Price of a Product or Service