A firm that buys goods that it would normally produce internally from an international company is using
A) transfer pricing.
B) insourcing.
C) international outsourcing.
D) domestic outsourcing.
C
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price increases from $7 to $9 is
A. elastic. B. inelastic. C. perfectly elastic. D. unit elastic.
A hyperinflation is
A) a period of extreme inflation generally greater than 50% per month. B) a period of anxiety caused by rising prices. C) an increase in output caused by higher prices. D) impossible today because of tighter regulations.
Refer to the above figure. If an individual firm wants to maximize economic profits, it should
A) charge $5 for its product. B) charge more than $5 for its product since increasing the price will increase revenues. C) charge less than $5 for its product since a lower price will attract more customers. D) withdraw its product from the market forcing the market price up.
If this firm were a perfect competitor, at what output would it produce in the long run?
A. 50 units
B. 60 units
C. 70 units
D. 75 units