Cost distortion fails to capture the cost implications of product diversity and therefore it:
A)can result in strategic pricing errors.
B)can result in strategic pricing success.
C)can result in target pricing success.
D)can result in increased sales.
E)can result in satisfied customers.

Question

Quizplus · Accepted Answer

Cost distortion only focuses on average costs and fails to consider the impact of product diversity on individual product costs. This can lead to strategic pricing errors and ultimately affect the profitability of the company.

Cost Distortion Fails to Capture the Cost Implications of Product