Question: Costco has built its successful retail chain using a cost-based pricing strategy. Costco marks up products a maximum of 15% to ensure a profit but

Costco has built its successful retail chain using a cost-based pricing strategy. Costco marks up products a maximum of 15% to ensure a profit but keep prices lower than competitors' prices. This works for Costco because they are in a market where: Select one: a. the price is set based on fixed and variable costs of production b. the retail price takes customer needs into account c. differentiation is minimal and customers are price sensitive d. customers are willing to pay for different levels of product performance e. the price is regulated by the government

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