Final answer:
True, customers and competitors significantly influence a company's pricing strategy, especially in markets with perfect competition such as independent trucking. Prices are dictated by the law of supply and demand, and businesses must consider the potential impact of competition on their profitability and market presence.
Step-by-step explanation:
The statement that customers and competitors play an important role in determining a company's price is true. In a market characterized by perfect competition, like that of independent truckers, for instance, businesses cannot simply raise prices without considering the potential impact on their customer base and competitive landscape. When a product is identical across different firms, any price increase can lead customers to switch to competitors' offerings, potentially resulting in loss of sales for the initial firm. Therefore, the price set by a firm must reflect the law of supply and demand as well as the competition in the market.
Additionally, companies that encounter competition from businesses offering better or cheaper products may see a reduction in profits and even risk being driven out of the market. This competition ensures that consumers benefit from better or less expensive products, and businesses with more attractive offerings can actually increase their profits.