Price floor is defined as:
A) costs which vary with changes in output.
B) costs which do not vary with changes in output.
C) a minimum price that must be charged to cover costs.
D) price to attract customers into the store, where it is expected they will buy other, normally priced, product.

Question

Quizplus · Accepted Answer

describe the principles of pricing based on cost and revenue analysis. Price floor is a minimum price that must be charged to cover costs.

Price Floor Is Defined As