The demand curve for a monopolistic competitor is likely to be flatter than that of a monopolist

What criticism does the textbook level against the cost-plus-markup theory of price setting?

A) The theory does not agree with what businessmen say about price setting. B) The theory does not account for vastly different percentage markups on different products. C) The theory implies firms will sometimes want to set prices below average cost per unit. D) The theory ignores sunk costs. E) All of the above.

Refer to Table 2-13. What is Horace's opportunity cost of grooming a dog?

A) half a bathed cat B) two bathed cats C) one and a half bathed cats D) two-thirds of a bathed cat