Average-Cost Pricing

question 86

Multiple Choice

Average-cost pricing

• A)will result in losses if actual sales are much higher than expected.
• B)might cause a firm to charge too high or too low a price-and reduce its profits.
• C)usually assumes the firm will sell a larger quantity than the year before.
• D)cannot be profitable,because it ignores demand.
• E)All these answers are correct.

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