What should be considered while setting the right price?
Answer and explanation
Correct answer: Cost, customer ability, and market condition
Pricing should cover relevant costs, remain acceptable to the target customer, and fit competition and market conditions. The business may also consider value and objectives, but seller preference alone is insufficient. Colour, size, or friends’ opinions may provide limited information, yet they cannot independently determine a suitable price.
Frequently asked questions
What is the correct answer to this question?
Cost, customer ability, and market condition
Why is this the correct answer?
Pricing should cover relevant costs, remain acceptable to the target customer, and fit competition and market conditions. The business may also consider value and objectives, but seller preference alone is insufficient. Colour, size, or friends’ opinions may provide limited information, yet they cannot independently determine a suitable price.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
