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.

---

Definitions:

Upward Pressure

Forces or conditions within a market that cause prices to rise, often due to factors like increased demand, higher production costs, or supply shortages.

Would-Be Buyers

Potential customers who have shown interest in purchasing a product or service but have not yet made a purchase.

Competitive Auction

A bidding process where various buyers compete to acquire goods or services by offering increasingly higher prices.

Organizational Buying Situations

Scenarios where businesses or institutions purchase goods or services for use in production, operations, resale, or as part of their own product offerings.