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:

Transmission Control System

A system in vehicles that uses electronic sensors, processors, and actuators to control gear shifts and optimize engine performance.

Single ECU

Refers to a vehicle having one Electronic Control Unit responsible for overseeing and managing the engine's performance and other systems.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.