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Why must an entrepreneur know the cost of a product?

Answer and explanation

Correct answer: To set a suitable price and profit

Product cost includes the expenditure needed to make or obtain the product. By knowing this cost, an entrepreneur can set a selling price that covers expenses and leaves a reasonable profit. Cost is not the same as selling price: cost is incurred by the business, while price is paid by the customer. Therefore, B is correct.

Related tags

CostPricingProfitIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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