A practical approach that is frequently used by managers when setting normal long-run prices is the
A)cost-plus approach.
B)economic theory approach.
C)price graph approach.
D)market price approach.

Question

Quizplus · Accepted Answer

The cost-plus approach is a common method used by managers to set long-run prices. This approach involves adding a markup to the production cost of a product to determine its selling price. This markup helps ensure that the company covers its costs and makes a reasonable profit. This approach is practical and straightforward and is often used in industries where pricing is relatively stable.

A Practical Approach That Is Frequently Used by Managers When