When firms use the going-rate pricing approach,they base product prices on:

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When firms use the going-rate pricing approach, they base their product prices on the prices charged by their competitors for similar products. This approach involves setting the price of the product at a similar level to the market average or the price of the competitor's product. This helps the firm to stay competitive and avoid losing customers to the competition. The going-rate pricing approach is most commonly used in highly competitive markets where the price is the main factor that customers consider when comparing products.

When Firms Use the Going-Rate Pricing Approach,they Base Product Prices