Question

What is the overall goal of administered pricing? Multiple Choice to increase competition in a market to gain control over a market share to ensure all companies use an ethical pricing model to increase the number of firms in a market to establish prices for an entire market

Answer 1

Answer: The answer is option C. to ensure all companies use an ethical pricing model.

Explanation: Administered pricing is the pricing of a products and services that is dictated by a government or a centralized authority, which is in opposition to the pricing of commodities that is dictated by market forces of supply and demand.

Administered prices have the following attributes:

- They are fixed by the government.

- They are regulatory in nature.

- They are corrective measures.

- They are statutory in nature.

Therefore, the overall goal of administered pricing is to ensure that organizations adopt an ethical pricing model.

Answer 2

Answer:

To ensure that companies use ethical pricing model

Explanation:

Administered pricing is a pricing model where the prices of goods are structured by the internal pricing factors of firms , taking into account cost rather than through the market forces of supply and demand . Prices are fixed by a centralized authority and it serves as price ceiling or price control.

Its overall goal is to ensure that companies do not take advantage of market forces of supply and demand but comply to the ethical pricing model as set by the relevant authorities