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What Is Cost-Plus Pricing? Why Do Some Firms Use Cost-Plus

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Essay

What is cost-plus pricing? Why do some firms use cost-plus pricing even when the firms' managers have the resources to devise a pricing strategy that would result in greater profits?


Definitions:

Argument

A series of statements or reasons made to persuade others that an action or idea is right or wrong.

Imply

To suggest or express something indirectly, without stating it explicitly.

Translation

The process of converting text or speech from one language to another.

Tautology

A redundant or repetitive statement in which the conclusion is equivalent to the premise.

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