Which of the following describes a disadvantage associated with markup pricing?
A) how difficult it is to implement
B) its inability to consider product demand
C) its dependence on marginal costs
D) too many factors influence it

Question

Quizplus · Accepted Answer

Markup pricing only considers the cost of the product and adds a percentage to determine the selling price. It does not consider product demand, which is a significant factor in determining the optimal price. As a result, it may result in overpricing or underpricing the product, leading to a decrease in overall profitability.

Which of the Following Describes a Disadvantage Associated with Markup