Which point is important while setting a price?
Answer and explanation
Correct answer: Understanding cost and customer ability
Pricing should consider the cost of providing the product or service, the value offered, competitors, demand, and what the target customers can reasonably pay. The price should support the business while remaining acceptable in the market and complying with applicable rules. Therefore option A is correct. Random pricing, ignoring customers, or hiding expenses is unsound.
Frequently asked questions
What is the correct answer to this question?
Understanding cost and customer ability
Why is this the correct answer?
Pricing should consider the cost of providing the product or service, the value offered, competitors, demand, and what the target customers can reasonably pay. The price should support the business while remaining acceptable in the market and complying with applicable rules. Therefore option A is correct. Random pricing, ignoring customers, or hiding expenses is unsound.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce.
