Final answer:
A. cost, demand, and competition
The three general bases for pricing in a small business are cost, demand, and competition. These factors contribute to determining a product's price, taking into account materials, labor costs, consumer interest, market supply, and pricing strategies relative to competitors.
Step-by-step explanation:
Three general bases used for pricing in a small business are cost, demand, and competition. These elements determine how a business sets the price for its products or services. The cost involves expenses like raw materials and wages paid to workers. Demand reflects customers' desire for a product, influencing price based on its level. High demand with limited supply can raise prices, whereas the opposite can reduce them. Competition impacts pricing as businesses strive to attract customers by offering better value or lower prices than their competitors. In a market with multiple businesses offering similar products, competition can drive prices down and improve product quality, benefiting consumers. An example of effective pricing strategy is that of major retailers like Amazon, which uses its production model and cost structure to offer competitive pricing, even when including shipping costs.