A problem with using the price of a product similar to the intermediate good sold on the market is

a. the market price includes a margin above marginal cost
b. the product on the market may include costly features your downstream division does not use
c. the product on the market may be cheap because it is not as high of quality as your downstream division uses
d. all of the above


d

Economics

You might also like to view...

A market structure in which a small number of firms compete is called

A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.

Economics

A firm can always increase its output by one unit at a marginal cost of $10 . Its marginal cost curve is

a. a horizontal line. b. a vertical line. c. a ray with slope equal to 10. d. exactly one-tenth as steep as its total cost curve.

Economics

Which of the following factors is most likely to cause the aggregate demand curve to shift rightward?

a. An increase in savings b. An increase in household wealth c. An increase in tax rates d. A decrease in government spending

Economics

A worker's contribution to a firm's revenue is measured directly by the worker's

a. marginal product. b. value of marginal product. c. marginal product multiplied by the worker's wage. d. value of marginal product multiplied by the output price.

Economics