When firms use cost-plus pricing in market

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When firms use cost-plus pricing in a market,

a. each firm sells only to its most-favored customer.

b. each firm falls short of maximizing profit as they charge the same price irrespective of their costs.

c. it may appear as though firms are colluding in price when they actually are not.

d. each firm determines its price based on other firms’ costs and prices.

e. prices of different firms diverge widely.

Reference no: EM131101471

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