Marginal cost pricing is a system of pricing in which the price charged equals the marginal cost of:
A. the last unit produced and the firm earns zero profit.
B. each unit produced and the firm earns zero profit.
C. the last unit produced and the firm suffers a loss unless the government gives the firm a subsidy.
D. the profit-maximization unit and the firm earns an economic profit.
Answer: C
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Deliberate actions by a central bank to influence the exchange rate are known as
A) current account actions. B) foreign-exchange market interventions. C) dollar-value operations. D) foreign-commerce maneuvers.
Suppose a recession surprises economic forecasters who did not see it coming. This is an example of a _____
a. cyclical lag b. recognition lag c. decision-making lag d. implementation lag e. effectiveness lag
A seller's verbal assurance that a used car is a plum (high-quality car):
A. is not effective at reducing the problems associated with asymmetric information. B. is an effective way for sellers to prove that the good they are selling is of high quality. C. is a more efficient way to prove high quality than a money-back guarantee because it does not cost the seller any money to make the assurance. D. provides the same protection against adverse selection than does a repair guarantee.
In the long run, increases in output per person arise primarily from:
A. an increasing proportion of the population retiring B. increases in female labor force participation. C. increases in male labor force participation. D. increases in average labor productivity.