Which of the following presents the strongest reason that mark-up pricing generally does NOT make sense?
A)Sellers earn a fair return on their investment.
B)By tying the price to cost,sellers simplify pricing.
C)When all firms in the industry use this pricing method,prices tend to be similar.
D)This method ignores demand.
E)With a standard mark-up,consumers know when they are being overcharged.

Question

Quizplus · Accepted Answer

Mark-up pricing ignores the demand for the product, which is a critical factor in determining the price. This can lead to overpriced products that do not match consumer demand, resulting in lost sales and revenue. Therefore, this method does not make sense in the long run.

Which of the Following Presents the Strongest Reason That Mark-Up