Which of the Following Statements About Average Cost-Pricing Is True

question 218

Multiple Choice

Which of the following statements about average cost-pricing is true?

• A)It can result in losses if actual sales are higher than expected.
• B)It is more profitable if actual sales are lower than expected.
• C)It does not take the demand curve into account when setting prices.
• D)It works better in practice than it does in theory.
• E)It can be used to set a price without an estimate of the quantity to be sold.

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