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.
Frequently asked questions
What is the correct answer to this question?
Cost, customer paying ability, and market competition
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
