Which of the Following Is Not an Advantage Cost-Plus Pricing

question 252

Multiple Choice

Which of the following is not an advantage cost-plus pricing?

• A) It leads to profit maximization.
• B) It is an easy method to implement if a firm produces multiple products and has overhead costs that are difficult to allocate to a particular good.
• C) It could lead to price stability if the industry is made up of identical firms all using the same method of pricing.
• D) It is easy to justify price increases when total costs of production increase.

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