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Like most one-year-olds, Antoine sucks reflexively when a sucker is placed in his mouth. For the past few days, Antoine's mother has turned on the television as she gives Antoine his daily sucker. Today, Antoine's mother turns on the television but does not have a sucker to give Antoine. Much to her surprise, Antoine begins to make a sucking motion despite having no sucker. Which theory best explains Antoine's behavior?
Selling Price
The amount of money for which a product or service is sold to customers.
Markup
The amount added to the cost price of goods to cover overhead and profit, determining the selling price.
Total Cost Method
A cost-plus method of price setting in which all the costs of manufacturing the product plus the selling and administrative expenses are included in the cost amount to which the markup is added.
Manufacturing Cost
The total expense incurred in the process of producing a product, including direct labor, direct materials, and overhead costs.
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