When Pricing a New Product, a Small Business Owner Should

question 42

Multiple Choice

When pricing a new product, a small business owner should strive to always satisfy which three objectives?

• A)Product acceptance, maintaining market share, and earning a profit.
• B)Quick acceptance, extensive distribution, and quickly recovering costs.
• C)Recovering initial development costs, recovering initial promotional costs, and discouraging competition.
• D)Discouraging competition, recovering development costs, and developing a prestige image.

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Definitions:

Self-Interest

The motivation driving individuals to pursue their own objectives and benefits, often guiding economic behavior and decision-making.

General Welfare

Refers to the overall economic health and wellbeing of a community or nation, encompassing factors such as employment, healthcare, and living standards.

Public Choice Theory

A branch of economics that studies how economic theories and methodologies apply to decision-making in the public sector, often focusing on the behavior of voters, politicians, and public officials.

Property Tax

Property tax is a levy on property that the owner is required to pay, usually based on the value of the property.