Book Publishers Often Use a Cost-Plus Pricing Strategy

question 87

Multiple Choice

Book publishers often use a cost-plus pricing strategy.One reason for this is

• A)most publishers do not hire economists who can determine the number of books they must sell to equate marginal cost and marginal revenue.
• B)publishers do not want to incur the expense of determining the profit-maximizing strategy. They prefer cost-plus pricing because of its lower cost.
• C)much of the cost of publishing textbooks is difficult to assign to any particular book.
• D)bookstores, not publishers, ultimately determine how many books will be produced.

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Definitions:

Halite

A salt mineral (NaCl) generally formed by the evaporation of water; cleaves into cubes and has a distinctive salty taste.

Tetrahedron

A four-sided pyramid, as in a silica tetrahedron.

Soluble

Capable of being dissolved in a solvent, typically referring to substances in liquids.

Mohs Hardness Scale

Consists of ten common minerals ranked in order of increasing relative hardness, from 1 to 10.