Book Publishers Often Use a Cost-Plus Pricing Strategy

question 87

Multiple Choice

Book publishers often use a cost-plus pricing strategy.One reason for this is

• A)most publishers do not hire economists who can determine the number of books they must sell to equate marginal cost and marginal revenue.
• B)publishers do not want to incur the expense of determining the profit-maximizing strategy. They prefer cost-plus pricing because of its lower cost.
• C)much of the cost of publishing textbooks is difficult to assign to any particular book.
• D)bookstores, not publishers, ultimately determine how many books will be produced.

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Definitions:

Reluctor

A term used to describe a number of devices that use magnetism and motion to produce voltage.

Series Circuit

An electrical circuit in which components are arranged in a single path, so current flows through one component to get to the next.

Voltage Drop

The decrease in electrical potential along the path of a current flowing in an electrical circuit, affecting the circuit's performance.

Power Consumed

The total amount of energy used by a device or system during its operation.