Which of the Following Statements Is True About Average Cost-Pricing

question 112

Multiple Choice

Which of the following statements is true about average cost-pricing?

• A) It can result in losses if actual sales are higher than expected.
• B) It is more profitable if actual sales are lower than expected.
• C) It does not take the demand curve into account when setting prices.
• D) It works better in practice than it does in theory.
• E) It can be used to set a price without an estimate of the quantity to be sold.

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