Average-cost pricing:
A) consists of adding a "reasonable" markup to the average cost of a product.
B) puts a great deal of emphasis on determining how sensitive consumer demand is at different price levels.
C) does not consider cost variations at different levels of output.
D) focuses on the differences between fixed and variable costs.
E) Both A and C are true.

Question

Quizplus · Accepted Answer

Average-cost pricing involves adding a markup to the average cost, and it does not account for cost variations at different output levels.

Average-Cost Pricing