A practical approach which is frequently used by managers when setting normal long-run prices is the:
A) cost-plus approach
B) economic theory approach
C) price graph approach
D) price skimming

Question

Quizplus · Accepted Answer

The cost-plus approach involves adding a markup to the cost of producing a product or service in order to determine the selling price. This approach is frequently used by managers as it takes into account the costs of production, such as labor, materials, and overhead, while also allowing for a reasonable profit margin. The economic theory approach is more focused on market demand and supply, while the price graph approach and price skimming are not as commonly used for setting normal long-run prices.

A Practical Approach Which Is Frequently Used by Managers When