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it's not 100 % right, yes costs one from many indicators for example :- in the same market & same items , yes costs is the main indicators .- in the same market with different item , you can accept some items with low or high cost related to items category .- in the same items but with a different market the accepted item cost will change .
In some aspects, yes, the level of cost will determine the level of prices to an extent. If a seller has 10 apples for sale, and it cost them $10 to obtain, then realistically, we would expect the seller to want to sell each apple at a price above $1 (otherwise he is making a loss).However, this is not the only factor affecting pricing. Consider the above example and suppose there is another seller selling applies for $0.50. No one would go to the apple seller with the price of $1 (assuming same quality, type, area, etc). As a result, in this case, the original apple seller would (if he wants to sell) would have to lower his price to that of the lower priced seller. In this case, it is likely that the original seller would go out of business, as he is making a loss on each apple. This point was made to highlight that COMPETITION is a key factor in price determination.As well as this, brand name, loyalty of consumers and consumer tastes all have an effect on pricing (this is a reason why Coca Cola can charge more than a generic brand).
In general though, you are right in the sense that cost determines the LOWEST price a seller can charge. Anything about that, the seller is making profit. The seller will not price below cost price, at least not in the long term. Hope this helps!
yes the main one almost product pricing decision takes based on the cost determination
The cost is the main determination for pricing beside other factors .
thanks for invite
yes . the ways to calculate cost price help us control sales price and many companies upon to decide sales price by percent from cost price or profit margin by add amount to cost
Agree with the answer added by Ahmed Subhy
