What should be considered while setting price in business?
Answer and explanation
Correct answer: Cost customer ability and market condition
A sensible price should consider the cost of producing or obtaining the offering, the value perceived by customers, their willingness and ability to pay, competitors’ prices, demand, and the enterprise’s objectives. Cost is important, but price should not be based on cost alone. The owner’s mood, shop colour, or a holiday by itself cannot determine a suitable price. Thus, A is correct.
Frequently asked questions
What is the correct answer to this question?
Cost customer ability and market condition
Why is this the correct answer?
A sensible price should consider the cost of producing or obtaining the offering, the value perceived by customers, their willingness and ability to pay, competitors’ prices, demand, and the enterprise’s objectives. Cost is important, but price should not be based on cost alone. The owner’s mood, shop colour, or a holiday by itself cannot determine a suitable price. Thus, A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship.
