What are the three basic factors that determine the market price of a product?
What will be an ideal response?
In any country, three basic factors determine the boundaries within which market prices should be set: cost, competition, and demand. The first is product cost, which establishes a long-run price floor, or minimum price. The second is competition, which of course is defined by customers: your competitors are those companies whose products compete with your products from the consumer's point of view. The third consideration is demand and value: price is a cue for value and, in the case of luxury products, is part of value. A cheap luxury watch is an oxymoron: there is no luxury without a luxury price.
You might also like to view...
Juan transferred 100 percent of his stock in Rosa Company to Azul Corporation in a Type B stock-for-stock exchange. In exchange, he received stock in Azul with a fair market value of $1,000,000. Juan's tax basis in the Rosa stock was $400,000. What amount of gain does Juan recognize in the exchange and what is his basis in the Azul stock he receives?
A. $600,000 gain recognized and a basis in Azul stock of $400,000. B. No gain recognized and a basis in Azul stock of $1,000,000. C. $600,000 gain recognized and a basis in Azul stock of $1,000,000. D. No gain recognized and a basis in Azul stock of $400,000.
As the number of qualifying criteria for a research study increases, the incidence rate will fall
Indicate whether the statement is true or false
You observe that a company's current ratio has increased significantly. This could indicate that:
a. contingent liabilities are not recorded. b. accounts payable is understated. c. expenses are inappropriately capitalized as assets. d. fixed assets are overstated.
Andy works as a freelance journalist at a local newspaper. He is paid $10 for every article he writes for the newspaper. In terms of reinforcement theory, this is a _____ reinforcement schedule.
Fill in the blank(s) with the appropriate word(s).