The cost plus pricing formula tends to ignore
A. quotas.
B. customer quantity sensitivity.
C. incremental costs.
D. fixed costs.
Answer: C
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Unlike an internally held public debt, an externally held public debt
a. cannot pass the debt burden on to future generations b. can pass the debt burden on to future generations c. expires upon maturity d. cannot be reduced because foreigners hold the debt e. causes crowding out
Assume that the coefficient of elasticity of product demand is 0.1 in the food and beverages (F&B) industry and is 2.3 in the oil and gas (O&G) industry. Other things equal, labor demand will be
a. relatively inelastic in both F&B, and O&G industries. b. relatively elastic in both F&B and O&G industries. c. more elastic in O&G industry than in F&B. d. more elastic in F&B industry than in O&G.
A minimum wage law creates a price (or wage) _____ and a labor _____.
A. floor; shortage B. floor; surplus C. ceiling; shortage D. ceiling; surplus
Which one of the following statements is NOT true?
A) The classical model assumes that people suffer from money illusion. B) The classical model assumes that no single seller of a commodity can affect its price. C) The classical model assumes that pure competition exists. D) The classical model assumes that people are motivated by self-interest.