Which of the following would be an example of a constraint in Step 1 of the price-setting process?
A) We can rely on our reputation for our other products in the line.
B) We expect to make a profit of $1.2 million.
C) We need to make allowances for large quantity orders.
D) We should increase the price during the holiday shopping season.
E) We're going to face some aggressive competition.

Question

Quizplus · Accepted Answer

Constraints in the price-setting process are factors that limit or restrict pricing decisions. Aggressive competition is a constraint because it can limit the ability to set higher prices.

Which of the Following Would Be an Example of a Constraint