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
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.
Question : Which factor affecting price determination is highlighted in the given statement? Statement: It is affected by intensity or price elasticity of demand.
Question : Which factor affecting price determination is highlighted in the given statement? Statement: It must reflect the interest of both buyers and sellers.
Question : Which factor affecting price determination is highlighted in the given statement? Statement: It includes the total cost of producing distributing and selling the product.
Question : Which factor affecting price determination is highlighted in the given statement? Statement: It is also affected by price control by the government.
Question : Which factor affecting price determination is highlighted in the given statement? Statement: If the firm aims to maximize profits in the short run then it would fix maximum price for its products.
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