Which of the following presents a major obstacle to using traditional price theory?
A) estimating markups
B) computing costs
C) predicting revenues
D) estimating demand curves

Question

Quizplus · Accepted Answer

Estimating demand curves presents a major obstacle to using traditional price theory because demand is often influenced by factors that are not easily measurable or predictable, such as consumer preferences, expectations, and external factors such as economic conditions or competition. Without accurate demand curves, it is difficult to determine optimal pricing strategies and forecast revenue and profitability. While estimating markups, computing costs, and predicting revenues are important considerations in pricing decisions, they are not as fundamental to traditional price theory as estimating demand curves.

Which of the Following Presents a Major Obstacle to Using