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5.4.2 Factors influencing pricing decisions

Card 1 of 20

Why do costs set the minimum price a business can charge in the long run?

A

Prices below average unit cost lose money on every sale and eventually exhaust cash.

B

Prices below variable cost always lose money on every sale and eventually exhaust cash.

C

Prices below total cost lose money on every sale and eventually exhaust cash.

D

Prices below fixed cost lose money on every sale and eventually exhaust cash.

Card 1 of 20

5.4.2 Factors influencing pricing decisions Flashcards

  1. GCSE
  2. /Business
  3. /5.4.2 Factors influencing pricing decisions

20 flashcards on AQA GCSE Business 5.4.2 Factors influencing pricing decisions: the key terms, formulae and case studies you need to recall for Paper 1 and Paper 2.

Flashcards