Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use?
A) break-even
B) target costing
C) competition-based
D) cost-plus
E) good-value

Question

Quizplus · Accepted Answer

Los Amigos will likely use a competition-based pricing strategy to attract customers from the established Hot Tamales and More by setting competitive prices.

Los Amigos, a New Mexican Restaurant, Has Set Up Shop