Pricing for a service should primarily relate to the cost of providing the service and has little to do with capacity issues the service provider might face.

Question

Quizplus · Accepted Answer

Pricing for a service should consider both the cost of providing the service and the capacity issues the service provider might face. If the service provider has limited capacity, they may need to charge higher prices to balance demand and supply. On the other hand, if the service provider has excess capacity, they may want to lower prices to attract more customers and optimize their resources.

Pricing for a Service Should Primarily Relate to the Cost