Most businesses probably claim they use cost-plus-markup pricing because
A) they are price takers.
B) they are maximizing net revenue.
C) they have no better way to explain their price-setting behavior.
D) they are responsible for long-run inflation.
C
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Suppose the market equilibrium price of corn is $5 per bushel, and the government sets a price ceiling of $4 per bushel. What is the most likely result of this action?
a. There will be a shortage of corn. b. There will be a surplus of corn. c. There will be a decrease in the quantity of corn demanded as the result of the price ceiling. d. There will be an increase in the quantity of corn supplied as the result of the price ceiling.
Which of the following provides the fuel for growth and achievement of high income levels?
a. gains from trade b. entrepreneurial discovery c. capital formation d. all of the above