Factors that limit the range of prices a firm may set are referred to as __________.

Question

Quizplus · Accepted Answer

Pricing constraints refer to the internal and external factors that limit the range of prices that a firm can set. These constraints may include costs of production, competition, consumer demand, and legal or ethical considerations. Therefore, option B is the correct choice as it highlights these factors. Option A, C, D, and E do not fully capture the concept of pricing constraints.

Factors That Limit the Range of Prices a Firm May