One method of setting price using the cost-plus method is to add
A) a given percentage of marginal cost to marginal cost of production.
B) a given percentage of fixed cost to total fixed cost.
C) a given percentage of average variable cost to average total cost.
D) a given percentage of average total cost to average total cost.
D
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When several resources are combined in the production of a good,
a. it is easy to determine the marginal products of the various resources b. the marginal contribution of each input often cannot be observed c. allocating revenue among the various resources is easy d. there is more competition for each of the resources used e. there is less competition for each of the resources used
Barriers to entry in a perfectly competitive industry
a. are nonexistent b. are impossible to overcome c. are possible to overcome, but more difficult an obstacle to entry than are barriers in monopolistic competition d. result from patents and economies of scale e. are essentially financial rather than technical