Which of the following statements is true about marginal analysis?

A. It focuses on the highest price per unit.
B. It explicitly considers demand when calculating price.
C. It assumes that the firm's total revenue curve is a straight line.
D. It bases the analysis on the cost of the first few units sold.
E. It takes into account the break-even point.


Answer: B

Business

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Many companies that sell clothes over the Internet will send e-mail messages or an e-mail newsletter to customers who are interested in keeping up with the latest fashion news. This strategy is most successful if it is based on:

A) lifetime value and customer cluster analysis B) data mining C) customer profile information the customer has provided to the company D) customer profile information obtained through cookies

Business

What is the effect of the sale of $5,000 worth of cash equivalents at cost in the statement of cash flows prepared under the direct method?

a. Add $5,000 in the reconciliation b. $5,000 investing cash inflow c. $5,000 operating cash inflow d. No disclosure

Business

The ________ protects stockholders' proportional interest in a corporation by allowing them to purchase their proportional share of any common stock later issued by the corporation.

What will be an ideal response?

Business

Purchasing materials in higher volumes has the advantage of reducing ______.

A. unit cost of material B. costs associated with storing these materials C. avoiding the possibility of having a surplus of finished products D. price charged to customer

Business