Pricing Decisions Must Be Given Careful Consideration When a Firm

Multiple Choice

Pricing decisions must be given careful consideration when a firm is introducing a new product or planning a short- or long-term price change because

A) if the price is too low, sales and profitability will increase.
B) low pricing indicates good quality to all consumers.
C) high pricing would lead to increased profits for the firm.
D) a successful pricing strategy is important for the profitability of the firm.