Long-run pricing:
A)needs to cover only incremental costs
B)only utilizes the market-based approach to pricing and not the cost-based approach
C)is a strategic decision
D)strives for flexible pricing that can respond to temporary changes in demand

Question

Quizplus · Accepted Answer

Long-run pricing is a strategic decision that considers both costs and market factors to ensure profitability and sustainability in the long term. It goes beyond covering only incremental costs and aims to establish competitive prices that reflect the value delivered to customers while supporting the company's goals and growth plans. Flexible pricing can be a part of the long-run pricing strategy, but it should not be the only factor considered.

Long-Run Pricing