Company will face low sales and low markups if company sets its product prices _____.

Too high

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Too low

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Too discount

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None of above

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Solution

The correct option is A Too high
If any company sets the price of its product or service too high, in the sense it is higher than others, even if they aren't compromising on other factors such as quality etc, the company will face low sales and low markup by the consumers. That is because the consumers will tend to buy from ones who have lesser prices at the best opportunity cost of other factors.

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