Question

Which of the following factors do not affect the fixation of the price of a product?

• A. The utility and demand
• B. Cost of the product
• C. Extent of competition in the market
• D. Social culture

Answer 1

Answer: (D)

Social culture

Price is a value that will purchase a finite quantity, weight or other measure of a good or services. Price is a consideration given in exchange for transfer of ownership. The price of a product may increase when the demand increases or reduce when the demand decreases. The cost of production plays the main role while fixing the price for a product as the price is almost always cost+ profit margin. To compete with the other companies in the market, price has to be around or lower than the price offered by the competitor.