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Which balance is most important in correct pricing?

Answer and explanation

Correct answer: Cost, customer paying ability, and market competition

A practical price must cover relevant costs and support the business's objectives, while remaining acceptable to the target customer and appropriate compared with competitors. Ignoring any one of these factors can reduce demand or profit. The highest price may drive customers away, and the lowest price may cause losses. Therefore, option A represents balanced pricing.

Related tags

Pricing StrategyMarket CompetitionCostConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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