Despite its weaknesses, markup pricing remains popular for which of the following reasons?

Despite its weaknesses, markup pricing remains popular for which of the following reasons?


A) Sellers can determine demand much more easily than they can estimate costs.

B) By tying the price to cost, the pricing task becomes more sophisticated.

C) When all firms in the industry use markup pricing, price competition flourishes.

D) Sellers take advantage of buyers when the latter's demand becomes acute.

E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.



Answer: E) Many people feel that cost-plus pricing is fairer to both buyers and sellers.


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