Question

Assertion (A): Parity Pricing is the most logical strategy when it is very difficult to calculate the cost of the products.

Reason (R): When price leadership is well established, setting price according to the competitors is the safest policy.

पर्याय

• (A) is true and (R) is false.

• Both (A) and (R) are true and (R) is the correct explanation of (A).

• Both (A) and (R) are true but (R) is not the correct explanation of (A).

• Both (A) and (R) are false.

Answer 1

Both (A) and (R) are true but (R) is not the correct explanation of (A).

Explanation:

Parity pricing means aligning prices with competitors. Parity pricing is effective when determining product costs is difficult. Aligning with benchmark prices set by significant competitors is a safe method to remain competitive, proving that both assertion and reasoning are true. Reason does not explain why parity makes sense when calculating product costs is difficult.