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The Major Weakness of Average-Cost Pricing Is That It

Question 130

Multiple Choice

The major weakness of average-cost pricing is that it


A) ignores likely customer demand at different prices.
B) usually leads to losses instead of profits.
C) always results in a profit that is less than expected.
D) is too hard for most managers to use.
E) All of these are major weaknesses of average-cost pricing.

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