The decision whether to change prices frequently or infrequently is an application of the:
A) principle of comparative advantage.
B) scarcity principle.
C) principle of increasing opportunity cost.
D) cost-benefit principle.

Question

Quizplus · Accepted Answer

The decision of whether to change prices frequently or infrequently should be based on the cost-benefit principle, which means that the benefits of a decision should outweigh the costs. Changing prices too frequently can lead to confusion and frustration for customers, and it also requires additional time and labor from the business. On the other hand, not adjusting prices at all can result in lost revenue or a competitive disadvantage. Therefore, businesses should weigh the potential benefits of adjusting prices against the costs of doing so and make their decision accordingly.

The Decision Whether to Change Prices Frequently or Infrequently Is