When Firms Use Cost-Plus Pricing in a Market

Multiple Choice

When firms use cost-plus pricing in a market,

A) each firm determines its price based on other firms' costs and prices.
B) it may appear as though firms are colluding in price when they actually are not.
C) prices of different firms will diverge widely.
D) each firm will never maximize profit as they are charging the same prices irrespective of their costs.
E) each will sell only to its most-favored customer.