Under the average-cost pricing policy, the telephone company has no incentive to cut costs. true

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Brutus

Business

2 June, 01:26

Under the average-cost pricing policy, the telephone company has no incentive to cut costs. true

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Addison Estes · Answer 1

The overall amount spent on promotion usually go lower as firms try to cut costs to remain profitable. Since some people may still want the product, firms need more targeted promotion to reach these customers. The most common method is to compute a percentage of either past sales or sales expected in the future.