Firms often use cost-based pricing to establish the lowest acceptable price for a product, then use demand or competition-based pricing to determine the actual price that will be charged.

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Firms often use cost-based pricing to establish the lowest acceptable price for a product, then use demand or competition-based pricing to determine the actual price that will be charged. This ensures the company will not lose money on the product.

Firms Often Use Cost-Based Pricing to Establish the Lowest Acceptable