The textbook rejects the cost-plus-markup theory of price setting because
A) business firms do not describe their price-setting procedures as cost-plus procedures.
B) competitors and monopolists set prices in different ways.
C) it cannot explain the prices we actually observe.
D) it ignores the role of government in regulating prices.
E) no single theory can explain all price-setting.
C
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Who among the following is speculating?
A) The economics department that offers its first online principles course B) The bookstore that buys back the Math 101 textbooks without confirmation that the department definitely plans to adopt it again next semester C) The resident hall advisor who purchases party favors for the end-of-semester bash D) All of the above. E) B and C above.
Refer to Table 7-6. All of the following are terms of trade that could possibly benefit both countries except
A) 1/4 of a belt : 1 sword. B) 7/10 of a belt : 1 sword. C) 4/5 of a belt : 1 sword. D) 2/3 of a belt : 1 sword.