Most Consumers Expect a Litre of Milk to Cost Anywhere

Multiple Choice

Most consumers expect a litre of milk to cost anywhere between $1-$3 dollars depending on if it is organic or not. Knowing this consumer expectation, a new dairy will probably charge consumers within this price range for their milk. This new dairy is engaging in:

A) Cost-plus-percentage-of-cost pricing
B) Customary pricing
C) Experience curve pricing
D) Standard markup pricing