The price of an item should be:
A)based solely on the break-even analysis.
B)less than what the competition is charging.
C)what purchasers are willing to pay.
D)total costs plus a margin of profit.

Question

Quizplus · Accepted Answer

The price of an item should ultimately be what purchasers are willing to pay. While break-even analysis and considering competition may be important factors, they should not be the sole determinants of pricing. Ultimately, the price must align with the perceived value and willingness to pay of the target consumer group.

The Price of an Item Should Be