When companies do not want to use market prices or find it too costly, they typically use ________ prices, even though suboptimal decisions may occur.
A) average-cost
B) full-cost
C) long-run cost
D) short-run average cost

Question

Quizplus · Accepted Answer

Companies often use full-cost pricing when they do not want to use market prices or find it too costly. This approach includes all fixed and variable costs in the price, which can lead to suboptimal decisions because it does not necessarily reflect market demand or competition.

When Companies Do Not Want to Use Market Prices or Find