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8 May, 13:05

You operate a lemonade stand. The wholesale cost of lemonade is $0.50 per unit. The cost of rent for the stand is $50 per day. You need to choose your pricing and advertising strategy. You are considering three alternatives:

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  1. 8 May, 16:12
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    Cost plus pricing

    Competitive pricing

    Social media advertising

    Explanation:

    Cost plus pricing involves adding a mark-up on cost of lemonade and cost of rent.

    Competitive pricing involves setting a price based on what other lemonade sellers charge

    Social media advertising - this includes raising awareness on social media platforms
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