
Though large firms have the knowledge and resources to utilize a better pricing strategy, many choose to use cost-plus pricing.One reason for this is that
A) large firms do not have to maximize their profits because they face little competition from other firms.
B) there is less risk of violating antitrust laws if a cost-plus pricing strategy is used rather than a profit-maximizing pricing strategy.
C) the additional revenue that would result from a profit-maximizing pricing strategy is an insignificant fraction of the firms' revenues.
D) firms often adjust the markup they charge to reflect current demand.
Correct Answer:
Verified
Q223: Figure 16-6 Q224: Even though it often does not result Q225: Which of the following firms is most Q226: Cost-plus pricing may be a reasonable way Q227: Some firms require consumers to pay an Q229: Cost-plus pricing would be consistent with selecting Q230: Cost-plus pricing typically does not result in Q231: Consider a discount retailer such as Costco Q232: Figure 16-6 Q233: Figure 16-6 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents