Question

Based on the influence chart below, the decision variable(s) for this model a. Price and elasticity b. Price and fixed cost c. Priced. Elasticity and fixed cost

Answer 1

Price is the decision variable in the given model.

Answer: Option C.

Step-by-step explanation:

For a model which is related to the field of commerce and affects a particular organisation or a firm, for that price is the most important factors. Because fixing the price at a particular level will help the firm earn profits and maintain position in the market.

Price is the cost of the product which is available to the customers in the market. The consumers have to pay that price to get a particular quantity of that particular product.