Which of the Following Statements Describes a Legitimate Disadvantage of Cost-Based

question 10

Multiple Choice

Which of the following statements describes a legitimate disadvantage of cost-based pricing?

• A)Marginal costs and revenues are difficult to measure.
• B)Determining the amount a customer is willing to pay may require sufficient estimation.
• C)Customers may not be willing to pay the price determined by the procedure.
• D)all of the above

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Definitions:

Comparative Advantage

Comparative advantage is an economic principle that describes the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

Opportunity cost refers to the value of the next best alternative that is foregone when choosing one option over another.

Ice Cream

A frozen dessert made from dairy products, sweeteners, and flavorings, enjoyed as a treat or snack.

Apple Pie

A traditional dessert made from apples and pastry dough, often seasoned with cinnamon, sugar, and sometimes butter, and baked until golden brown.