Factors that limit the range of prices a firm may set are referred to as
A)pricing objectives.
B)pricing restraints.
C)pricing constraints.
D)pricing elasticity.
E)the pricing environment.

Question

Quizplus · Accepted Answer

Pricing constraints or factors limit the range of prices a firm can set, such as production or material costs, competitive prices, consumer demand, and legal or ethical considerations. Pricing objectives refer to the goals of a firm when setting prices, such as maximizing profits or market share. Pricing elasticity refers to how responsive consumers are to changes in prices, and the pricing environment includes external factors that can affect pricing, such as the economy or government regulations. Therefore, the best choice is pricing constraints or limitations (option C).

Factors That Limit the Range of Prices a Firm May