Which of the following is an approach to long-run pricing decisions?

A.

Opportunistic pricing, which is based on demand and competition. Prices are decreased when demand is weak and

competition is strong and increased when demand is strong and competition is weak.

B.

Cost-based pricing, which asks, "What does it cost us to make this product and, hence, what price should we charge that will recoup our costs and achieve a target return on investment?"

C.

Market-based pricing, an important form of which is target pricing. The market-based approach asks, "Given what our customers want and how our competitors will react to what we do, what price should we charge?"

D.

Both B and C are correct.