Question

Which statement is most accurate regarding pricing and business practices?

A. Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times.

B. Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products.

C. Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.

D. Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit.

E. Marketers must ensure that firms in their channels of distribution make an adequate profit or they will be cut off from their customers.

Answer 1

The most accurate statement regarding pricing and business practices is option D. Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit.

Step-by-step explanation:

The most accurate statement regarding pricing and business practices is Option D: Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products, but they should not price their products to earn a profit.

This statement recognizes the importance of covering costs to ensure sustainability and responsibility, but also highlights the need for businesses to prioritize social and ethical considerations over profit maximization. For example, a socially responsible corporation may price a product at a level that covers production and marketing costs but does not aim to generate excessive profits, allowing them to provide affordable and accessible products to a wider range of consumers while still maintaining their financial sustainability.