Cost-price pricing typically does not result in profit-maximization. As a result, economists have two views of cost-plus pricing. One of these views is
A) cost-plus pricing is a good way to approximate the profit-maximizing price when marginal revenue or marginal cost is difficult to determine.
B) cost-plus pricing is more likely to lead to profit-maximization for monopolistically competitive firms than for oligopoly firms.
C) cost-plus pricing is more likely to result in profit-maximization the more elastic the firm's demand curve is.
D) cost-plus pricing is more likely to lead to profit-maximization for large firms than for small firms.
A
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Answer the following statement true (T) or false (F)
In order for mutually beneficial trade to occur between two otherwise isolated nations
A. each nation must be able to produce at least one good absolutely cheaper than the other. B. each nation must be able to produce at least one good relatively cheaper than the other. C. one nation's production must be labor-intensive while the other nation's production is capital-intensive. D. each nation must face constant costs in the production of the good it exports.