profit-oriented approaches to pricing,a price setter may choose to balance both _________ and _________ to set price.

Question

Quizplus · Accepted Answer

A profit-oriented approach to pricing involves setting a price that generates revenue sufficient to cover costs and also provides a profit for the business. Therefore, the price setter needs to balance both cost and revenue to ensure that they achieve their profit objectives while providing value to their customers. Choice A) (cost; profit) may not be the best choice as it suggests that profit is the primary goal, whereas revenue is a more appropriate measure of pricing success. Similarly, choices B) (cost; service) and D) (cost; supply) are not as relevant to pricing decisions as cost and revenue. Choice E) (cost; demand) may be important in certain market situations, but cost and revenue are typically more fundamental considerations.

Profit-Oriented Approaches to Pricing,a Price Setter May Choose to Balance