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:

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