In a competitive market,a supplier will use which type of pricing approach?

Question

Quizplus · Accepted Answer

In a competitive market, the best pricing approach is to set the price according to the current market price. This is because in a competitive market, there are many suppliers offering similar products or services, so customers are more price-sensitive and will choose the product or service that offers the best value for money. Setting the price too high may result in customers choosing a competitor's offering, while setting the price too low may result in lower profit margins for the supplier. Therefore, setting the price close to the current market price is the most effective approach.

In a Competitive Market,a Supplier Will Use Which Type of Pricing