Why Is Markup Pricing Most Likely Impractical

question 4

Multiple Choice

Why is markup pricing most likely impractical?

• A) Calculating costs is complicated due to fluctuations.
• B) By tying the price to cost, sellers oversimplify pricing.
• C) When all firms in the industry use this pricing method, prices tend to be similar.
• D) The method ignores demand and competitor prices.
• E) With a standard markup, consumers know when they are being overcharged.

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Definitions:

Secondary Drive

A learned motivation derived from the fulfillment of a primary drive or through its association with primary drives, such as money for food.

Great Wealth

An abundance of valuable financial assets or physical possessions which surpasses the norm or average.

Achievement

The successful accomplishment of a task or goal, often recognized by some form of reward or acknowledgment.

David McClelland

A psychological theorist known for his work on motivation, particularly regarding the needs for achievement, power, and affiliation.