Pricing constraints are:
A)factors that limit the latitude of prices a firm may set.
B)barriers that must be overcome in order to set pricing objectives.
C)competitive pricing advantages one firm has over another.
D)different pricing strategies for each of the firm's products.

Question

Quizplus · Accepted Answer

Pricing constraints are external factors that limit the range within which a firm may set its prices. These may include factors such as the industry norms, competition, legal regulations, and the economic environment. A firm must consider these constraints when setting its pricing objectives and strategies. Therefore, option A is the correct answer. B, C, and D do not accurately describe pricing constraints.

Pricing Constraints Are