Question : Which factor affecting price determination is highlighted in the given statement?
Statement: It cannot be fixed without considering the nature and the degree of competition.
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)
23rd Jan, 2024
Correct Answer: Extent of competition in the market
Solution : Price of product cannot be fixed without considering the nature and the degree of competition. The price will tend to reach the upper limit in case of laser degree of competition while under conditions of stiff competition price will tend to be set at the lowest level.
Hence, option C is correct.
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