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:

Assassinated

The act of deliberately killing someone, especially a public figure, usually for political or ideological reasons.

Vietnam War

A prolonged conflict from the 1950s to the 1970s between communist forces in North Vietnam and the government of South Vietnam, heavily involving the United States and other allies.

Students for a Democratic Society

An activist student organization in the United States, prominent in the 1960s for its role in the civil rights, anti-Vietnam War, and student rights movements.