Question 7
PricingWhich of the following is not a factor that determines the price of a product?
- A.Quality of the product
- B.Customers ability to pay
- C.Competition from suppliers
- D.Price of similar products
Show the answer and explanation
Answer: C (Competition from suppliers)
Explanation
Quality, what customers can afford and competitors' prices all affect price; competition among the firm's suppliers does not directly set its selling price.