Question

One form of competition-based pricing is going-rate pricing, inwhich a firm bases its price largely on competitors' prices, withless attention paid to its own ___________or

to ___________.

a. Price, demand
b. Cost ,demand
c. Profit ,cost
d. Sales ,cost
e. Profit ,demand

Answer 1

Out of the four options , the option that is most suitable is

option b. Cost, demand

cost or to demand

Step-by-step explanation:

Going rate pricing is a form of competition based pricing. This pricing is commonly used for homogeneous products i.e., products with very minute distinction or variation among producers.

This type of pricing is based on setting price on the basis of the prevailing market trends in pricing of goods or services, so, the prices are largely based on the competition in the market rather than considering its own cost and demand.