--%>
Assignment Help - homework help

Define the term cost plus pricing

Define the term cost plus pricing.

E

Expert

Verified

Cost plus pricing:

It is the most common method used for price. In this method, the price is fixed to envelop all costs and a predetermined percentage of profit that is the price is computed by adding an exact percentage to the cost of the product per unit. Such method is also termed as margin pricing or full costs pricing or say average cost pricing or may mark up pricing. The business firm in oligopoly and monopolistic market are given this pricing policy.

   Related Questions in Managerial Economics

  • Q : Backward bending supply curve for labor

    A backward bending supply curve for labor arises while: (w) firms wish to hire only a specific quantity of labor. (x) there is a change in the elasticity of resource supply. (y) workers prefer leisure over added income above several wage. (z) minimum

    		•
  • Q : Define the pricing of a new product

    Define the pricing of a new product.

    		•
  • Q : Derived Demand for Labor All else

    All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training

    		•
  • Q : Competitive Supply Curves of Labor to

    When a firm does not influence the wage rate no matter how many workers this hires, then: (1) MRPL = MRCL for all feasible output levels for the firm. (2) MRCL = MPPL for all feasible output levels for the firm. (3) MPPL = MRPL for all feasible output

    		•
  • Q : Hiring more labor in profit maximization

    When a firm hires an additional worker who adds $100 worth of output daily, and adds $50 daily to the firm’s costs, in that case the firm must: (w) hire more labor. (x) hire less labor. (y) not change its employment of labor. (z) sell off some o

    		•
  • Q : Internal factors in governing prices

    What are the internal factors in governing prices?

    		•
  • Q : Formulate the Cross Elasticity of demand

    Formulate the Cross Elasticity of demand?

    		•
  • Q : Features of Marginal costing Write down

    Write down the features of Marginal costing?

    		•
  • Q : Use of Screening Device Screening

    Screening devices used while employers try to stop adverse selection through applicants for positions do not comprise: (1) reviewing résumés to identify applicants’ qualifications. (2) needing non-compete clauses which prevent new

    		•
  • Q : Illustrate when Price is greater than

    Suppose that price is greater than average variable cost. When a perfectly competitive seller is producing at an output therefore price is $11 and the marginal cost is $14.54, in that case to maximize profits the firm must: w) continu

    		•