"Average-Cost Pricing

question 272

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 of these alternatives are correct.

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