The practice of setting price by increasing the average costs of production by some percentage is referred to as:
A) average cost pricing.
B) percentage pricing.
C) rate-of-return pricing.
D) markup pricing.
D
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What is the reason that all economic issues and problems occur?
A) All nations use some form of money to buy and sell goods and services. B) People seek only their own self-interest. C) Powerful governments are able to control production and consumption. D) Human wants exceed the resources available to satisfy them. E) Humans are always wasteful and inefficient in production and consumption.
A monopoly firm is charging the price the market will bear at a level of output where MC equals $22 and is increasing, MR equals $20, and average variable cost equals $17 . To maximize profits, the firm should: a. increase both output and price
b. increase output but decrease the price. c. decrease output and increase the price. d. decrease both output and price.
Antitrust legislation prohibits a person from being on the board of directors of more than one firm at any time
Indicate whether the statement is true or false
Refer to the graph shown. Currently, if this perfectly competitive firm is maximizing profit, the market price is:
A. $5.00 and marginal revenue for the firm is $3.00 B. $5.00 and marginal revenue for the firm is $5.00 C. $6.50 and marginal revenue for the firm is $6.50 D. $6.50 and marginal revenue for the firm is $5.00