Which of the Following Firms Is Most Likely to Use

question 100

Multiple Choice

Which of the following firms is most likely to use cost-plus pricing?

• A)A firm that makes one product.
• B)A firm that sells one product and has a sizable research and development budget.
• C)A firm that makes several products and has a sizable research and development budget, the cost of which cannot be easily assigned to each product.
• D)A firm that makes many products but has a small research and development budget, the cost of which can be easily assigned to the different product lines.

---

Definitions:

Underemployment

A situation in which workers are employed below their skill level or work fewer hours than they would prefer.

DVCs

Digital Video Cameras, electronic devices used to capture video in a digital format.

Currency Appreciation

The increase in the value of one currency relative to another in the foreign exchange market, often impacting international trade and economic balance.