Book publishers often use a cost-plus pricing strategy.One reason for this is
A)most publishers do not hire economists who can determine the number of books they must sell to equate marginal cost and marginal revenue.
B)publishers do not want to incur the expense of determining the profit-maximizing strategy. They prefer cost-plus pricing because of its lower cost.
C)much of the cost of publishing textbooks is difficult to assign to any particular book.
D)bookstores, not publishers, ultimately determine how many books will be produced.

Question

Quizplus · Accepted Answer

Much of the cost involved in publishing textbooks is not easy to assign to a particular book. Cost-plus pricing helps publishers in covering their costs, which are not necessarily related to a specific book. This strategy helps in ensuring that the publisher's profit margin is covered, even if some books do not sell well. Moreover, publishers have a good idea of their marginal costs, which they can determine by calculating the cost of printing, distribution, and other fixed expenses.

Book Publishers Often Use a Cost-Plus Pricing Strategy