Despite Its Weaknesses, Markup Pricing Remains Popular for Which of the Following

question 17

Multiple Choice

Despite its weaknesses, markup pricing remains popular for which of the following reasons?

• A) Sellers can determine demand much more easily than they can estimate costs.
• B) By tying the price to cost, the pricing task becomes more sophisticated.
• C) When all firms in the industry use markup pricing, price competition flourishes.
• D) Sellers take advantage of buyers when the latter's demand becomes acute.
• E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.

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Definitions:

Defects

Imperfections or faults in a product, process, or system that deviate from desired specifications.

Fabric

A material made by weaving, knitting, pressing, or bonding that may be used in the production of clothing, household items, and other goods.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Guessing

The act of answering or making a prediction without sufficient information or knowledge, often based on intuition.