The difference between the value perceived by the customer and the manufacturer's marginal cost defines the range of possible prices.

Question

Quizplus · Accepted Answer

This statement is true. The perceived value by the customer is what they believe the product or service is worth to them, whereas the manufacturer's marginal cost is the cost to produce one additional unit. The difference between these two values can help determine the range of prices that the product could be sold for.

The Difference Between the Value Perceived by the Customer and the Manufacturer's