Final answer:
Competitors' pricing is crucial in product pricing, with the potential of significantly affecting a business's profitability. The statement is false; competitors' pricing must be considered to avoid loss of sales and potentially the business itself.
Step-by-step explanation:
Competitors' pricing is a crucial factor when setting your product's prices. The statement that it's not important is false. If your product is identical to others in the market and your price is higher than your competitors, customers are likely to switch to cheaper alternatives, leading to a loss of sales. This reasoning is well illustrated in examples of perfect competition, e.g., independent trucking, where all providers offer essentially the same service, and as a result, must adhere to the going market rate to remain competitive.
Furthermore, competition from firms with better or cheaper products can significantly impact a business's profitability and even cause it to shut down, as workers might lose their income or jobs. This highlights the importance of competitors' pricing in a market economy.
Regarding the goods market, although it's commonly believed no buyer would pay more than the equilibrium price, this can be false. Buyers sometimes pay more due to a lack of information, urgency, or perceived added value.