Though large firms have the knowledge and resources to utilize a better pricing strategy, many choose to use cost-plus pricing. One reason for this is that

A) large firms do not have to maximize their profits because they face little competition from other firms.
B) firms often adjust the markup they charge to reflect current demand.
C) there is less risk of violating antitrust laws if a cost-plus pricing strategy is used rather than a profit-maximizing pricing strategy.
D) the additional revenue that would result from a profit-maximizing pricing strategy is an insignificant fraction of the firms' revenues.


B

Economics

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