Post Utme Unn 2019 Commerce Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Unn Commerce examination.

Post Utme Unn 2019 Commerce Objective / Multiple Choice
Question 2 POST_UTME_UNN • 2019 • COMMERCE • objective

A firm is considering the introduction of a new product line. The product line is expected to have a high fixed cost, but a low variable cost. Which of the following is the most appropriate way for the firm to determine the optimal price for the new product?

Answer Options

A. Use the break-even analysis to determine the minimum price required to cover fixed costs
Correct Answer B. Conduct market research to determine the price elasticity of demand for the product
C. Use the marginal cost pricing rule to determine the optimal price
D. Negotiate with suppliers to reduce the variable cost of production
Correct Answer
B
Correct Option:
Conduct market research to determine the price elasticity of demand for the product

About This Question

This is Post Utme Unn 2019 Commerce Question 2. It is one of the objective questions from the 2019 Post Utme Unn Commerce examination.

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