Cost-plus pricing would be consistent with selecting the profit-maximizing price when
A) the demand for the firm's product is unit elastic.
B) consumers value the product beyond its marginal cost.
C) a firm has no difficulty estimating its demand curve.
D) it results in a price that causes quantity sold to be where marginal revenue equals marginal cost.
D
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When comparing monetary and fiscal policy under fixed and floating exchange rate regimes, which of the following statements is FALSE?
A) In a floating exchange rate regime, an expansionary monetary policy is effective by stimulating spending and by depreciating the currency. B) In a floating exchange rate regime, an expansionary fiscal policy is effective by stimulating spending, though there may be crowding-out effects due to higher rates of interest and currency appreciation. C) In a fixed exchange rate regime, an expansionary monetary policy is effective by stimulating spending; it has no impact on the currency value or the trade balance. D) In a fixed exchange rate regime, an expansionary fiscal policy is effective by stimulating spending, as long as the parallel expansionary monetary policy keeps exchange rates stable.
If a government provides substantial benefits to the unemployed while they look for work, it reduces the ______ of being unemployed.
Fill in the blank(s) with the appropriate word(s).