Describe the three major pricing methods that firms ...

[Mimi]

Describe the three major pricing methods that firms employ.

Question 2

Goals are established for only one year at a time.
 
 Indicate whether the statement is true or false

[Pswine]

Answer to Question 1

Cost-based pricing is the simplest method of pricing. The seller determines the total cost of producing, or purchasing, one unit and then adds an amount to cover additional costs and profit. Demand-based pricing is based on the level of demand of the product and results in a high price when product demand is strong and a low price when demand is weak. Competition-based pricing is when a company considers costs and revenue secondary to competitors' prices.

Answer to Question 2

False

[Mimi]

Correct answers!

[Pswine]

Great! Please up vote