At a Minimum, the Price of a Product or Service

question 102

Multiple Choice

At a minimum, the price of a product or service must cover

• A) the owner's expected return on investment.
• B) the cost of bringing it to customers.
• C) all costs of the business plus the profit margin.
• D) production and distribution costs.

---

Definitions:

Society

A broad term defining a group of individuals living together in a more or less ordered community, sharing customs, laws, and organizations.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available matches precisely the amount desired by consumers at the current market rate.

Tax

Mandatory financial charge or another type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.