Which of the Following Statements Is Correct

question 31

Multiple Choice

Which of the following statements is correct?

• A)To maximize profit, a firm should apply a uniform markup to each product it sells.
• B)The profit-maximizing firm's ability to mark up price over average cost is limited by the price elasticity of demand for the product in question.
• C)It is not possible to maximize profits by using a markup pricing strategy.
• D)Using markup pricing is more complicated than simply setting price equal to marginal cost.

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Definitions:

Job Enrichment

The incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement, into a job.