Why is markup pricing most likely impractical?
A) Calculating costs is complicated due to fluctuations.
B) By tying the price to cost, sellers oversimplify pricing.
C) When all firms in the industry use this pricing method, prices tend to be similar.
D) The method ignores demand and competitor prices.
E) With a standard markup, consumers know when they are being overcharged.

Question

Quizplus · Accepted Answer

Markup pricing only considers cost and ignores demand and competitor prices, which can lead to prices that are too high or too low compared to the market. Therefore, it is not a practical pricing strategy for most businesses.

Why Is Markup Pricing Most Likely Impractical