Learning Objective 10-P6: Determine product selling price. Pricing decisions are one of the more important decisions managers make. They are also one of the most difficult decisions. Managers must take concepts involving supply and demand and apply them to product or service pricing. It is important for managers to understand the setting in which they set prices.

 Learning Objective 10-P6: Determine product selling price.
Pricing decisions are one of the more important decisions managers make. They are also one of the most difficult decisions. Managers must take concepts involving supply and demand and apply them to product or service pricing. It is important for managers to understand the setting in which they set prices.

 Knowledge Check 01

A price taker: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

check all that apply
has more control over setting prices Incorrect
has less control over setting prices Incorrect
uses more target pricing methods Correct
uses more cost-plus pricing methods Incorrect

Explanation
Knowledge Check 01

A price taker has less control over setting prices and uses more target pricing methods. A price setter has more control over setting prices and uses more cost-plus pricing methods.

Thanks