If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, it must be facing a "menu cost" of adjusting its price that exceeds

The decision to innovate

A) depends on the marketing department's needs. B) depends on whether the firm wants to benefit its customers. C) is based on the marginal cost and the marginal revenue of innovation. D) is unnecessary in a monopolistically competitive market. E) None of the above answers is correct.

Which of the following is NOT a way to deal with risk?

a. assuming b. avoiding c. shifting d. deflecting