Cost-Based Pricing Is a Pricing Method That

question 29

Multiple Choice

Cost-based pricing is a pricing method that:

• A)applies a mark-up to the calculation of the product or service cost
• B)seeks to establish prices at what the customer is willing to pay
• C)determines the minimum amount a customer will pay
• D)none of the options is true

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Definitions:

Intuitionism

A philosophical theory emphasizing that moral truths are known through intuition, denying that moral properties are reducible to natural properties.

Rational Persons

Individuals who use reason and logic to make decisions, typically in economic theory, assuming that people aim to maximize their self-interest.

Correctness

The quality or state of being free from errors, inaccuracies, or faults.

Milton Friedman

An American economist known for his strong belief in free-market capitalism and for being a leading proponent of the efficiency of markets and the reduction of government intervention.