Related to the Economics in Practice on page 267: When trying to determine the price of a new product, firms sometimes price the product close to the prices of similar products in the market. Firms call this approach
A) price rationing.
B) focus group pricing.
C) test market pricing.
D) benchmark pricing.

Question

Quizplus · Accepted Answer

Benchmark pricing is the strategy where firms set the price of their new product based on the prices of similar products in the market. This approach helps them to remain competitive and ensure that their product is attractively priced to potential customers.

Related to the Economics in Practice on Page 267: When