A Common Pricing Mistake Entrepreneurs Make Is Lowering Prices Because

question 19

Multiple Choice

A common pricing mistake entrepreneurs make is lowering prices because they fail to recognize the ________.

• A)extra value, convenience, service, and quality they offer their customers
• B)advantages they have due to their lower cost structure
• C)complexities that larger competitors have to face
• D)driving need that all customers have to find the lowest price possible

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Definitions:

Shift Of

An alteration in the position or direction of something, often used in economic contexts to describe changes in supply, demand, or other market variables.

Technological Change

Innovations in technology that improve the efficiency or effectiveness of production, services, and the creation of new products.

Business Expectations

Business Expectations relate to the outlook that firms have regarding future economic conditions, influencing their decisions on investments and expansions.

Investment Demand Curve

A graphical representation showing the inverse relationship between the rate of interest and the quantity of investment demanded by businesses.