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Firms may use the cost-plus pricing technique because

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6 years ago

Firms may use the cost-plus pricing technique because

Firms may use the cost-plus pricing technique because
A) it will allow them to earn higher profits than they can make by producing where MR equals MC.
B) they lack the information required to use the MR = MC approach.
C) the MR = MC approach ignores certain costs which must be considered in the real world.
D) it ensures that the firm will earn a profit by building all of its costs into the selling price.
E) the MR = MC approach considers fixed costs, while the cost-plus approach does not.

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Introduction to Economic Reasoning

Edition: 8^th

Author: Rohlf

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