If marginal costs differ quite substantially from average total costs, then using a cost-plus pricing schedule will not lead to the profit maximizing price
Indicate whether the statement is true or false
TRUE
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There are three goods you are interested in purchasing, X, Y and Z. You notice that the price of Z has fallen. Given that the cross price elasticity between Z and Y is ?1.5; the cross price elasticity between Y and X is 3.0, and the cross price elasticity between Z and X is 0.50 . It would make sense that:
a. Z and X are complements; Y and X are substitutes. b. Y and X are substitutes; Y is complementary to Z. c. X and Z are unrelated; Y is complementary to X. d. X and Z are complements; Y and Z are substitutes.
Keynes asserted that investment is more responsive to business expectations, technological changes and innovation, than to changes in interest rates
Indicate whether the statement is true or false