Break-even analysis usually assumes all of the following except:
a. in the short run, there is no distinction between variable and fixed costs.
b. revenue and cost curves are straight-lines throughout the analysis.
c. there appears to be perfect competition since the price is considered to remain the same regardless of quantity.
d. the straight-line cost curve implies that marginal cost is constant.
e. both c and d
a
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If the price elasticity of demand for opera tickets is estimated to be 4.5, then a 10 percent increase in opera ticket prices would be expected to cause a
a. 4.5 percent decrease in quantity demanded. b. 4.5 percent increase in quantity demanded. c. 45 percent decrease in quantity demanded. d. 45 percent increase in quantity demanded. e. 450 percent increase in quantity demanded
The bulk of offshoring is vertical, relating to producing a component piece in an overall supply chain production
Indicate whether the statement is true or false
There is greater support for active policymaking when
A. price flexibility is common. B. pure competition is common. C. wage flexibility is common. D. none of these.
The government announces a tax increase on workers' wages to take effect in the future. What happens to current employment and the real wage rate?
A. Both employment and the real wage rate would increase. B. Both employment and the real wage rate would decrease. C. Employment would increase and the real wage would decrease. D. Employment would decrease and the real wage would increase.