A firm develops a satisfactory product/service,evaluates the total expense of the product/service,and sets a price that covers all expenses and a target profit.This type of pricing is product/service driven.What is being described?
A) marginal revenue-based pricing
B) market-driven pricing
C) cost-based pricing
D) demand-based pricing

Question

Quizplus · Accepted Answer

This type of pricing is called cost-based pricing, where the firm considers all its expenses and adds a target profit to set a price for its product or service. The pricing is driven by the cost of the product or service, rather than market demand or marginal revenue.

A Firm Develops a Satisfactory Product/service,evaluates the Total Expense of the Product/service,and