Consider the Following Statements About Why Prices Are Often Based

Multiple Choice

Consider the following statements about why prices are often based on product costs:
I. Companies sell many products and services, and cost-based approaches provide a simple and direct pricing method.
II. The cost of a product or service provides a lower limit or floor, below which price should not be set in the long run.
III. Determining a company's demand and marginal revenue curves is difficult, costly, and time consuming.
Which of the above statements is (are) true?

A) I only.
B) III only.
C) I and III.
D) II and III.
E) I, II, and III.