Which of the following is NOT done when setting group prices?
A)Consider each group as a separate market.
B)Produce at the quantity where marginal revenue equals marginal cost.
C)Charge the price on the demand curve for the chosen quantity.
D)Assume that group demand equals market demand.

Question

Quizplus · Accepted Answer

Assuming that group demand equals market demand is incorrect when setting group prices because each group may have different demand characteristics and willingness to pay. It's important to consider each group as a separate market to effectively price for that specific segment.

Which of the Following Is NOT Done When Setting Group