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An entrepreneur sets a low price but does not retain enough money to maintain product quality. What is the main strategic mistake?

Answer and explanation

Correct answer: Failing to balance cost and quality in pricing

Pricing should account for production and operating costs while supporting the quality promised to customers. If the price is too low to fund suitable materials, testing or skilled labour, product quality and business sustainability may suffer. Option A identifies this failure to balance cost and quality.

Related tags

Pricing StrategyProduct QualityIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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