Question

A company sells a product that is relatively unique. Consequently, there is not a lot of competition for the product. The company most likely: A. is a price-taker. B. uses a pricing approach emphasizing target costing. C. is a price-setter. D. sells commodities.

Answer 1

C.

Step-by-step explanation:

Price-setters or price-makers are those companies that are able to set prices as their products vary from those of it's competitors. Such entities are able to enjoy pricing power in monopoly market.

In the given scenario, the company whose product is relatively unique will be price setter. Since the product is new in the market, the entity is able to set price in the market for it's competitors.

Therefore, the correct answer is option C.