A weakness associated with cost-based pricing methods is that they
A) are too difficult to calculate.
B) infer a cost-price ratio.
C) do not recognize the role that consumers or competitors' prices play in the marketplace.
D) do not allow for predatory pricing.
E) are structurally inflexible and ignore vertical price fixing alternatives.

Question

Quizplus · Accepted Answer

Cost-based pricing methods focus solely on the costs of production, without considering the impact of consumer demand and competitor pricing on the marketplace. This can result in pricing strategies that do not align with market realities, which can lead to missed sales opportunities or reduced profitability.

A Weakness Associated with Cost-Based Pricing Methods Is That They