In an economic downturn, a problem with cost-based pricing is a potential death spiral.

Name: In an economic downturn, a problem with cost-based pricing is a potential death spiral.
Brand: Quizplus
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Question

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In an economic downturn, cost-based pricing can lead to a "death spiral" because as demand falls, companies may raise prices to cover fixed costs, which can further reduce demand, creating a vicious cycle of declining sales and increasing prices.

In an Economic Downturn, a Problem with Cost-Based Pricing Is