What Pricing Concept Is Used If All Costs Are Considered

question 139

Multiple Choice

What pricing concept is used if all costs are considered and a fair markup is added to determine the selling price?

• A) total cost concept
• B) demand-based concept
• C) variable cost concept
• D) fixed cost concept

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Definitions:

Automobiles

Motor vehicles with four wheels designed to transport people on roads; their availability, culture, and economics significantly impact society.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade and production.

Absolute Advantage

Absolute advantage refers to an individual's, firm's, or country's ability to produce more of a good or service than competitors, using the same amount of resources.

Technology

The application of scientific knowledge for practical purposes, especially in industry.