What is the difference between pricing a product based on what a competitors charge and pricing a product based on the company's costs?

ANSWER TRUE AND FALSE?

Pricing based on what competitors charge takes into account their current prices. A company may choose to go above, below, or match their price. Pricing based on a company's costs takes into account its internal climate, meaning its own product costs, and can choose to add a specific percentage of profit on top of those costs. Usually, newer businesses will choose this tactic