A practical approach that is frequently used by managers when setting normal long-run prices is the
A) cost-plus approach
B) economic theory approach
C) price graph approach
D) price skimming

Question

Quizplus · Accepted Answer

The cost-plus approach is a practical approach to setting long-run prices and involves calculating the total cost of producing a product or service and adding a desired profit margin. This approach is frequently used by managers because it ensures that the price covers all costs and provides a reasonable profit margin.

A Practical Approach That Is Frequently Used by Managers When