Krizia is excited about her bakery that she just started. As a marketing major, Krizia knows that setting the correct price will be critical to the success of her bakery. In particular, Krizia wants to get a very good grip on costs, as she knows costs establish the ___________ for her prices.
A) floor
B) competitive positioning
C) ceiling
D) profits

Question

Quizplus · Accepted Answer

Costs establish the floor for prices, meaning they set the minimum price at which a product can be sold to cover all costs associated with producing and selling it.

Krizia Is Excited About Her Bakery That She Just Started