Even Though It Often Does Not Result in Profit Maximization

Multiple Choice

Even though it often does not result in profit maximization, some small firms use a cost-plus pricing strategy anyway because

A) it is easy to use.
B) they do not understand what marginal revenue and marginal cost mean.
C) it is expensive to hire an economist who can determine what the profit-maximizing price is.
D) they sell several products, each of which sells for a different price. The time and expense involved in finding the profit-maximizing price for each product are not worth the effort.