Which of the following firms is most likely to use cost-plus pricing?
A) A firm that makes many products but has a small research and development budget, the cost of which can be easily assigned to the different product lines.
B) A firm that sells one product and has a sizable research and development budget.
C) A firm that makes several products and has a sizable research and development budget, the cost of which cannot be easily assigned to each product.
D) A firm that makes one product.
C
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In the short run,
A. all of the firm’s input quantities, including plant size, become adjustable. B. firms are not constrained by past decisions. C. firms have relatively little opportunity to change production processes. D. all of the firm’s current commitments come to an end.
If 50 percent of the population receives 20 percent of the total income, it can be represented on the Lorenz curve by:
a. a point below the line of income equality. b. a line below the line of income equality. c. a point on the line of income equality. d. a line intersecting the line of income equality from below. e. a point above the line of income equality.
Which of the following is true?
a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals. b. Unanticipated inflation is a change in the price level that is widely expected. c. Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy. d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.
A CPI miscalculation that overstates its increase by 0.8 percentage points will cause
A. the price of goods to rise. B. the poverty line to rise too slowly. C. the poverty line to rise too quickly. D. the price of services to rise.