Even though it often does not result in profit maximization, some small firms use a cost-plus pricing strategy anyway because
A) they sell several products, each of which sells for a different price. The time and expense involved in finding the profit-maximizing price for each product are not worth the effort.
B) they do not understand what marginal revenue and marginal cost mean.
C) it is easy to use.
D) it is expensive to hire an economist who can determine what the profit-maximizing price is.
C
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Which of the following factors does not explain the inverse relationship between the price level and the total demand for output?
A. An interest-rate effect B. A foreign-purchases effect C. A real-balances effect D. A substitution effect
When measuring effectiveness of a treatment, surrogate measures reflect clinical efficacy and include:
a. hip fractures. b. bone-mass density (BMD). c. scores on standard evaluative exams such as EuroQol or SF-36. d. recurrence of the disease. e. death.
Unsolicited emails are viewed as being ______.
a. moral hazards b. free rides c. positive externalities d. negative externalities
The Phillips curve illustrates the relationship between:
A. change in the money supply and change in unemployment. B. tax rates and tax revenues. C. the equilibrium level of income and the employment rate. D. inflation and unemployment.