The pricing floor is the break-even point or the lowest amount that can be charged for a product or service while still making a minimal profit.

Question

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This is because the pricing floor is the minimum price that covers the costs of producing and delivering the product or service, while still making a profit margin. Going below this price would mean that the company is not covering its costs and will be operating at a loss.

The Pricing Floor Is the Break-Even Point or the Lowest