If marginal costs differ quite substantially from average total costs, then using a cost-plus pricing schedule will not lead to the profit maximizing price
Indicate whether the statement is true or false
TRUE
You might also like to view...
Which of the following decreases aggregate demand and shifts the AD curve leftward?
A) a tax cut B) an increase in quantity of money C) an interest rate hike D) a decrease in potential GDP E) an increase in government expenditures on goods and services
In the one-input model, a decrease in output price will always cause labor demand to shift in.
Answer the following statement true (T) or false (F)
"Lender of last resort" means that the central bank
a. has to lend money to failing banks. b. should lend money to individuals if their bankruptcy would threaten the banking system. c. should lend money to banks that are suffering short-term liquidity shortages. d. should lend money to pay for government deficits. e. None of the above
The most important weakness of the Sherman Antitrust Act was that:
A. the Supreme Court refused to enforce it. B. it wasn't specific about the types of acts which would violate the law. C. it didn't outlaw restraints of trade. D. it was too complicated.