Which of the following statements regarding the manufacture of new products is/are true?
i. Uncertainties about the potential market for the product pose problems when pricing these products.
ii. Uncertainties regarding obstacles that will be encountered in manufacturing these products pose pricing problems.
iii. Uncertainties about production costs will not influence pricing decisions because these types of products are generally sold in a non-competitive market.

Question

Quizplus · Accepted Answer

Uncertainties about the potential market for a new product pose problems when determining the price, as it is difficult to predict how much customers will be willing to pay. Similarly, uncertainties regarding obstacles in manufacturing the product can also affect pricing decisions, as any unexpected costs or delays may need to be factored in. However, statement iii is false, as production costs will always be a consideration in pricing decisions, regardless of market competitiveness.

Which of the Following Statements Regarding the Manufacture of New