When an organisation using market-based prices cannot differentiate its product due to extensive competition, the product:
A) Is considered a regulated price
B) Involves more non-value-added activities than value-added activities
C) Is considered a commodity
D) Cannot be sold at a profit

Question

Quizplus · Accepted Answer

When an organization cannot differentiate its product due to extensive competition and is using market-based prices, the product is considered a commodity. Commodities are goods that are essentially interchangeable with others of the same type, and their prices are determined by market conditions.

When an Organisation Using Market-Based Prices Cannot Differentiate Its Product