What should an entrepreneur consider while setting price?
Answer and explanation
Correct answer: Cost, customer affordability and market price
A sensible price should cover relevant costs and support a reasonable return, while remaining acceptable to the target customer and consistent with market conditions and competing offers. The entrepreneur must balance these factors rather than follow personal preference alone. Option A is correct. The highest possible price or harming competitors is not a sound pricing principle.
Frequently asked questions
What is the correct answer to this question?
Cost, customer affordability and market price
Why is this the correct answer?
A sensible price should cover relevant costs and support a reasonable return, while remaining acceptable to the target customer and consistent with market conditions and competing offers. The entrepreneur must balance these factors rather than follow personal preference alone. Option A is correct. The highest possible price or harming competitors is not a sound pricing principle.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
