Many companies do not want to use market prices, or find it too costly, and they use ________ prices, even though sub optimal decisions may occur.
A) average-cost
B) full-cost
C) long-run cost
D) short-run average cost
E) variable cost

Question

Quizplus · Accepted Answer

Many companies use full-cost pricing because it includes all fixed and variable costs, making it easier to ensure all costs are covered, even though it may lead to suboptimal pricing decisions compared to market-based pricing.

Many Companies Do Not Want to Use Market Prices, or Find