Which of the Following Presents the Strongest Reason That Mark-Up

question 38

Multiple Choice

Which of the following presents the strongest reason that mark-up pricing generally does NOT make sense?

• A)Sellers earn a fair return on their investment.
• B)By tying the price to cost,sellers simplify pricing.
• C)When all firms in the industry use this pricing method,prices tend to be similar.
• D)This method ignores demand.
• E)With a standard mark-up,consumers know when they are being overcharged.

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Definitions:

Extinction

Discourages a behavior by making the removal of a desirable consequence contingent on its occurrence.

Attribution Theory

A theory in social psychology that explains how individuals infer the causes of their own and others' behavior.

Internal Factors

Elements within an organization that can influence its operations, including its personnel, culture, and internal processes.

External Factors

Elements outside of an individual's or organization's control that can influence outcomes, such as economic conditions, societal trends, or technological changes.