Which of the following is a reason why markup pricing is NOT practical?
A) Sellers earn a fair return on their investment.
B) By tying the price to cost, sellers simplify pricing.
C) When all firms in the industry use this pricing method, prices tend to be similar.
D) This method ignores demand.
E) With a standard markup, consumers know when they are being overcharged.

Question

Quizplus · Accepted Answer

Markup pricing ignores demand, which means that prices may not accurately reflect what consumers are willing to pay for a product or service. This can lead to lost sales and potential revenue for sellers. Therefore, it is not always the most practical pricing strategy.

Which of the Following Is a Reason Why Markup Pricing