Question: Markup or cost-plus pricing is a popular practice in setting initial product prices for which of the following reasons? By tying the price to cost,

Markup or cost-plus pricing is a popular practice in setting initial product prices for which of the following reasons?

By tying the price to cost, the pricing task becomes more sophisticated

Sellers take advantage of buyers when the latters demand becomes acute

Sellers can determine demand much more easily than they can estimate cots

Many people feel that cost-plus pricing is fairer to both buyers and sellers

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