One of the Reasons Why a Firm Typically Charges for a Good

question 73

Multiple Choice

One of the reasons why a firm typically charges for a good or service less than the value placed on that good or service by the customer is because:

• A)the firm attempts to create value for the consumers by providing them a wide range of products.
• B)it is normally impossible to segment a market based on each customer's reservation price.
• C)the value creation results in a corresponding reduction in costs of production.
• D)the firm frequently modifies its products to compete with the products introduced by other firms.
• E)it is highly unlikely that the same good or service will be available to the customers from other firms.

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The final or most significant objective or aim that is pursued; the highest aim.

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