2013年BEC中级商务英语考试口语资料（4）
How to answer questions
Example question:考试用书
What determines the price of a product?
Example answer:
● The price of a product is influenced by the costs. 1
● This is because firms have to charge a price which is greater than costs to make a profit. 2
● However in the short run a firm may sell a product at a loss. This may be to gain market share or because the product is still at the introduction phase and has high research and launch costs. 3
● Overall it depends on whether we are considering a short or long term pricing policy. Firms may be willing to make a loss in the short run. It will also depend on the objectives of the firm. Some public sector organisations, e.g. may simply try to cover costs.
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