Many book publishers use cost-plus pricing to establish prices for some of their books
Would you expect a publishing company to use a strict cost-plus pricing system for all its books? How might you determine if a publishing company actually does use cost-plus pricing for all its books?
We should not expect a publishing company to use cost-plus pricing for all its books. We can see evidence that cost-plus pricing is not always used by looking at prices of the same book in different markets (for example, the United States and European markets), or by noting that best sellers usually sell for lower prices, or that the relative prices of some books change over time.
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A higher nominal interest rate ________ the profit-maximizing level of MPK for firms, leading firms to a ________ capital-output ratio, thus ________ net investment
A) raises, higher, raising B) raises, lower, lowering C) lowers, higher, raising D) lowers, higher, lowering E) lowers, lower, raising
If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output,
A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is not possible to determine which option is more economically efficient.
A government reduces its budget deficit, but at the same time people become concerned that the outlook for future government expenditures and revenues increase the chance it will default. Which of the following is correct?
a. The reduced budget deficit will raise interest rates in general. The increased risk of default will raise interest rates on government bonds. b. The reduced budget deficit will raise interest rates in general. The increased risk of default will reduce interest rates on government bonds. c. The reduced budget deficit will reduce interest rates in general. The increased risk of default will raise interest rates on government bonds. d. The reduced budget deficit will reduce interest rates in general. The increased risk of default will reduce interest rates on government bonds.
Sugar and honey are viewed as substitutes for each other in many recipes. If the price of sugar rises, we would expect: