88.3k views
0 votes
Setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for their goods and services that will draw customers and ________.

1 Answer

5 votes

Answer:

produce a profit

Step-by-step explanation:

Price refers to the amount of money that is paid by one party to another to acquire a particular commodity or in return for unit of commodities. Some of the factors that determines the price of a commodity include cost of production, product demand, product supply, targeted profit, and among others.

A profit is the amount earned from selling a commodity minus the amount expended to purchase, operate, or produce the commodity.

The primary aim of an entrepreneur is to make a profit, and price setting is one of the important activities that influences a profit. Since the higher the price, the higher may be the profit. However, a higher price may also dicourage customers from buying a product and then reduces profit.

Therefore, setting prices for products and services requires entrepreneurs to balance a multitude of complex forces as entrepreneurs determine prices for their goods and services that will draw customers and produce a profit.

User Bugs
by
4.9k points