The price a company charges for a good or service is typically more than the utility placed upon that good or service by the customer.

Question

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The price a company charges for a good or service is ideally less than or equal to the utility perceived by the customer, as this perceived utility drives the customer's willingness to pay. If the price were consistently more than the utility placed upon the good or service by the customer, demand would likely decrease as customers would not see the value in making the purchase.

The Price a Company Charges for a Good or Service