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
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Means-tested welfare benefits provide recipients with a strong incentive to:
A. work. B. leave welfare. C. accurately disclose their earnings. D. underreport their earnings.
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) If government purchases rise, total expenditures on goods and services rises, and the AD curve shifts leftward. B) If government purchases rise, total expenditures on goods and services rises, and the AD curve shifts rightward. C) If consumption rises, total expenditures on goods and services rises, and the AD curve shifts rightward. D) If consumption rises, total expenditures on goods and services rises, and the quantity demanded of Real GDP rises. E) b and c
The U.S. International Trade Commission rejects many antidumping and countervailing duty allegations because there is:
a. insufficient evidence that a U.S. industry is materially injured as a result of dumping or export subsidization. b. insufficient evidence of dumping or export subsidization. c. insufficient evidence of dumping or export subsidization and insufficient evidence that a U.S. industry is materially injured as a result of dumping or export subsidization. d. no evidence of dumping or export subsidization, but there is evidence that a U.S. industry is materially injured.
When reselling a product is easy, ______.
a. firms can price discriminate b. price differentials expand c. price differentials shrink d. market prices increase