Average-Cost Pricing

question 233

Multiple Choice

Average-cost pricing

• A)may be very profitable if actual sales are higher than expected.
• B)may lose money for the firm if actual sales are less than expected.
• C)does not take demand into account in setting prices.
• D)is simple in theory but often fails in practice.
• E)All these answers are correct.

---

Definitions:

Role Set

A role set is a cluster of roles attached to a single status.

Status Group

A social group that people belong to based on factors like prestige, honor, and lifestyle, rather than solely economic or social class.

Role Cluster

A set of roles that are associated with a particular social status or position in society, typically involving expected behaviors and responsibilities.

Robert Provine

A psychologist and neuroscientist known for his research on laughter, tears, and other human behaviors.