The cost-plus method for pricing a company's products is used in markets where
A) products are not differentiated from those of competitors.
B) products are differentiated from those of competitors.
C) competition is high, with no one producer dictating the price.
D) price takers prevail in setting prices.

Question

Quizplus · Accepted Answer

The cost-plus method is often used when products are differentiated, allowing companies to set prices based on costs plus a markup, as they have some control over pricing due to the unique features of their products.

The Cost-Plus Method for Pricing a Company's Products Is Used