George and Alice Renfro decided to start a family business in 1990 to produce chowchow,a Southern regional food.To determine how they would price the chowchow,the Renfros had to examine (1)the demand for the product (e.g. ,would people eat store-bought?);(2)the costs of the jars for and bottling of the chowchow;and (3)the cost to distribute the product to area grocery stores.The Renfros are doing which step of the price-setting process?

Question

Quizplus · Accepted Answer

In their pricing decision,the Renfros had to identify restrictions or "constraints" that limit the range of prices they could charge,which is Step 1 of their price-setting process.The two primary constraints the Renfros face are to identify the demand for and the cost of producing and marketing the product.

George and Alice Renfro Decided to Start a Family Business