Question : Which factor affecting price determination is highlighted in the given statement?
Statement: Competitor prices and their anticipated reactions must be considered before fixing the price of a product.
Option 1: Product cost
Option 2: Utility and demand of the product
Option 3: Extent of competition in the market
Option 4: Government and legal regulations
Answer (1)
17th Jan, 2024
Correct Answer:
Extent of competition in the market
Solution : Competitor prices and their anticipated reactions must be considered before fixing the price of a product. Price of product cannot be fixed without considering the nature and the degree of competition.
Hence, option C is correct.
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