Using "keystoning" as a pricing strategy
A) creates undue complexity for retailers.
B) avoids having to participate in pure competition.
C) ignores consumers' sensitivity to changes in prices.
D) allows marketers to estimate the substitution effect.
E) maximizes the difference between total cost and total variable cost.

Question

Quizplus · Accepted Answer

Keystoning involves setting the retail price at double the wholesale cost, which does not take into account consumer price sensitivity or demand elasticity.

Using "Keystoning" as a Pricing Strategy