In many firms prices are set by
A) adding a percentage increase to last year's prices.
B) reviewing customer feedback.
C) a price war with competitors.
D) product distributors, such as Wal-Mart.
E) understanding customer needs.

Question

Quizplus · Accepted Answer

Many firms set prices by adding a percentage increase to last year's prices, a method known as cost-plus pricing. This approach is straightforward and ensures that costs are covered while achieving a desired profit margin.

In Many Firms Prices Are Set by